Berry Petroleum Corporation (NASDAQ:BRY): Ex-Dividend Is In 4 Days
Attention dividend hunters! Berry Petroleum Corporation (NASDAQ:BRY) will be distributing its dividend of US$0.12 per share on the 15 April 2019, and will start trading ex-dividend in 4 days time on the 14 March 2019. Should you diversify into Berry Petroleum and boost your portfolio income stream? Well, keep on reading because today, 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 Berry Petroleum
5 checks you should use to assess 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 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 have the ability to keep paying its dividends going forward?
Does Berry Petroleum pass our checks?
The current trailing twelve-month payout ratio for the stock is 25%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect BRY’s payout to remain around the same level at 24% of its earnings. Assuming a constant share price, this equates to a dividend yield of around 4.1%. Furthermore, EPS should increase to $1.43.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
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. The reality is that it is too early to consider Berry Petroleum 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, Berry Petroleum has a yield of 4.1%, which is high for Oil and Gas stocks.
Next Steps:
Keeping in mind the dividend characteristics above, Berry Petroleum is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for BRY’s future growth? Take a look at our free research report of analyst consensus for BRY’s outlook.
Valuation: What is BRY worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether BRY is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
