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 Baldwin & Lyons Inc (NASDAQ:BWIN.B) has returned an average of 4.00% per year to investors in the form of dividend payouts. Let’s dig deeper into whether Baldwin & Lyons should have a place in your portfolio. See our latest analysis for Baldwin & Lyons
5 questions I ask before picking a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Is it the top 25% annual dividend yield payer?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has dividend per share risen in the past couple of years?
- Can it afford to pay the current rate of dividends from its earnings?
- Will it be able to continue to payout at the current rate in the future?
Does Baldwin & Lyons pass our checks?
The company currently pays out 137.83% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is not well-covered by its earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
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. In the case of BWIN.B it has increased its DPS from $1 to $1.12 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 BWIN.B a true dividend rockstar.
In terms of its peers, Baldwin & Lyons generates a yield of 4.46%, which is high for Insurance stocks.
With this in mind, I definitely rank Baldwin & Lyons 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, 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. Below, I’ve compiled three essential factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BWIN.B’s future growth? Take a look at our free research report of analyst consensus for BWIN.B’s outlook.
- Historical Performance: What has BWIN.B’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.
- 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.