Have you been waiting for Tiptree Inc’s (NASDAQ:TIPT) upcoming dividend of $0.03 per share? Then you only have to wait 3 more days before the stock pays out on 27 November 2017, and starts trading ex-dividend on the 17 November 2017. So if you want to cash in on TIPT’s dividend payment and are not yet a shareholder, you have only few days left! Today I am going to take a look at TIPT’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for TIPT
5 checks you should do on a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is it paying an annual yield above 75% of dividend payers?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has the amount of dividend per share grown over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Will the company be able to keep paying dividend based on the future earnings growth?
How well does Tiptree fit our criteria?
The company currently pays out more than double of its earnings as a dividend, meaning that the dividend is predominantly funded by retained earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Dividend payments from Tiptree have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. Compared to its peers, Tiptree produces a yield of 1.95%, which is on the low-side for diversified financial services stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in TIPT right now, in terms of its dividend attributes. It may be worth exploring other income stocks as alternatives to TIPT or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Now you know to keep in mind the reason why investors should be careful investing in TIPT for the dividend. But if you are not exclusively a dividend investor, TIPT could still be an interesting investment opportunity. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Take a look at our latest free fundmental analysis to explore other aspects of TIPT.
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.