Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. In the past 10 years Aegean Marine Petroleum Network Inc (NYSE:ANW) has returned an average of 1.00% per year to investors in the form of dividend payouts. Should it have a place in your portfolio? Let’s take a look at Aegean Marine Petroleum Network in more detail.
How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it paying an annual yield above 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?
- 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?
How does Aegean Marine Petroleum Network fare?
The current payout ratio for ANW 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. Dividend payments from Aegean Marine Petroleum Network have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.
Compared to its peers, Aegean Marine Petroleum Network has a yield of 2.04%, which is on the low-side for Oil and Gas stocks.
Now you know to keep in mind the reason why investors should be careful investing in Aegean Marine Petroleum Network for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ANW’s future growth? Take a look at our free research report of analyst consensus for ANW’s outlook.
- Historical Performance: What has ANW’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 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 past 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. For errors that warrant correction please contact the editor at email@example.com.