9 Days Left Before N Brown Group plc (LSE:BWNG) Will Start Trading Ex-Dividend, Is It Worth Buying?
Important news for shareholders and potential investors in N Brown Group plc (LSE:BWNG): The dividend payment of £0.06 per share will be distributed into shareholder on 12 January 2018, and the stock will begin trading ex-dividend at an earlier date, 14 December 2017. Is this future income a persuasive enough catalyst for investors to think about BWNG as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for N Brown Group
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment or 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?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does N Brown Group fit our criteria?
BWNG currently pays out twice what it is earning, which suggests that the dividend is not well-covered by earnings by any means. In the near future, analysts are predicting a more sensible payout ratio of 62.03%, leading to a dividend yield of around 5.20%. Furthermore, EPS should increase to £0.14, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. BWNG has increased its DPS from £0.08 to £0.14 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes BWNG a true dividend rockstar. In terms of its peers, BWNG has a yield of 5.08%, which is high for internet and direct marketing retail stocks.
What this means for you:
Are you a shareholder? With N Brown Group producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. However, depending on your current portfolio, it may be beneficial exploring other dividend stocks to enhance your diversification, or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Keeping in mind the dividend characteristics above, BWNG is definitely worth considering for investors looking to build a dedicated income portfolio. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Another aspect to consider for BWNG is how much it’s actually worth. Is N Brown Group overvalued or is it actually a bargain? Dig deeper in our latest free analysis to find out!
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.
