Advertisement
U.S. markets open in 4 hours 2 minutes
  • S&P Futures

    5,210.25
    -4.50 (-0.09%)
     
  • Dow Futures

    39,198.00
    -25.00 (-0.06%)
     
  • Nasdaq Futures

    18,213.50
    -18.00 (-0.10%)
     
  • Russell 2000 Futures

    2,043.90
    -5.90 (-0.29%)
     
  • Crude Oil

    82.43
    -0.29 (-0.35%)
     
  • Gold

    2,156.10
    -8.20 (-0.38%)
     
  • Silver

    25.10
    -0.16 (-0.63%)
     
  • EUR/USD

    1.0847
    -0.0029 (-0.27%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.51
    +0.18 (+1.26%)
     
  • GBP/USD

    1.2681
    -0.0047 (-0.37%)
     
  • USD/JPY

    150.5650
    +1.4670 (+0.98%)
     
  • Bitcoin USD

    63,663.66
    -4,523.28 (-6.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,717.74
    -4.81 (-0.06%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

Is Atento SA. (NYSE:ATTO) A Smart Pick For Income Investors?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. In the past, Atento SA. (NYSE:ATTO) has returned an average of 4.00% per year to investors in the form of dividend payouts. Let’s dig deeper into whether Atento should have a place in your portfolio. Check out our latest analysis for Atento

5 checks you should do on a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

  • Is their annual yield among the top 25% of dividend payers?

  • Has it paid dividend every year without dramatically reducing payout in the past?

  • Has dividend per share amount increased over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will it have the ability to keep paying its dividends going forward?

NYSE:ATTO Historical Dividend Yield Mar 26th 18
NYSE:ATTO Historical Dividend Yield Mar 26th 18

Does Atento pass our checks?

The current payout ratio for ATTO is negative, meaning that the company is not yet profitable and is paying dividend by dipping into 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. Unfortunately, it is really too early to view Atento as a dividend investment. Last year was the company’s first dividend payment, so it is certainly early days. The standard practice for reliable payers is to look for 10 or so years of track record. Relative to peers, Atento has a yield of 4.28%, which is high for Commercial Services stocks.

Next Steps:

Taking all the above into account, Atento is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, 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. There are three relevant factors you should further examine:


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.

Advertisement