Important news for shareholders and potential investors in MidWestOne Financial Group Inc (NASDAQ:MOFG): The dividend payment of $0.2 per share will be distributed into shareholder on 15 March 2018, and the stock will begin trading ex-dividend at an earlier date, 28 February 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine MidWestOne Financial Group’s latest financial data to analyse its dividend characteristics. See our latest analysis for MidWestOne Financial Group
5 checks you should use to assess a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has dividend per share amount increased over the past?
- Is it able to pay the current rate of dividends from its earnings?
- Will it be able to continue to payout at the current rate in the future?
How well does MidWestOne Financial Group fit our criteria?
The current trailing twelve-month payout ratio for the stock is 43.14%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 28.13%, leading to a dividend yield of around 2.47%. However, EPS should increase to $2.77, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although MOFG’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, MidWestOne Financial Group has a yield of 2.43%, which is on the low-side for Banks stocks.
Taking into account the dividend metrics, MidWestOne Financial Group ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three fundamental aspects you should further examine:
- 1. Future Outlook: What are well-informed industry analysts predicting for MOFG’s future growth? Take a look at our free research report of analyst consensus for MOFG’s outlook.
- 2. Valuation: What is MOFG worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether MOFG is currently mispriced by the market.
- 3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.