7 Days Left To Nabors Industries Ltd (NBR)’s Ex-Dividend Date, Should Investors Buy?
If you are interested in cashing in on Nabors Industries Ltd’s (NYSE:NBR) upcoming dividend of $0.06 per share, you only have 7 days left to buy the shares before its ex-dividend date, 12 December 2017, in time for dividends payable on the 03 January 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine NBR’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Nabors Industries
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount over the past?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How does Nabors Industries fare?
The current payout ratio for NBR is negative, which means that it is loss-making, and paying its dividend from its retained earnings. 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. The reality is that it is too early to consider Nabors Industries as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Nabors Industries produces a yield of 3.77%, which is high for energy equipment and services stocks.
What this means for you:
Are you a shareholder? If NBR is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be worth exploring other income stocks as alternatives to NBR 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? If you are building an income portfolio, then Nabors Industries is a complicated choice since it has some positive aspects as well as negative ones. But if you are not exclusively a dividend investor, NBR 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 NBR.
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.
