4 Days Left Before Moneysupermarketcom Group PLC (LON:MONY) Will Start Trading Ex-Dividend, Should You Buy?
Have you been keeping an eye on Moneysupermarketcom Group PLC’s (LSE:MONY) upcoming dividend of £0.08 per share payable on the 15 May 2018? Then you only have 4 days left before the stock starts trading ex-dividend on the 05 April 2018. Should you diversify into Moneysupermarket.com Group and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Moneysupermarket.com Group
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is it the top 25% annual dividend yield payer?
Has it paid dividend every year without dramatically reducing payout in the past?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
Does Moneysupermarket.com Group pass our checks?
Moneysupermarket.com Group has a trailing twelve-month payout ratio of 72.29%, which means that the dividend is covered by earnings. However, going forward, analysts expect MONY’s payout to fall to 64.38% of its earnings, which leads to a dividend yield of around 4.00%. However, EPS should increase to £0.16, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Although MONY’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, Moneysupermarket.com Group generates a yield of 3.64%, which is high for Internet stocks but still below the market’s top dividend payers.
Next Steps:
With this in mind, I definitely rank Moneysupermarket.com Group as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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. I’ve put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MONY’s future growth? Take a look at our free research report of analyst consensus for MONY’s outlook.
Valuation: What is MONY 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 MONY is currently mispriced by the market.
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.
