If you are interested in cashing in on MDU Resources Group Inc’s (NYSE:MDU) upcoming dividend of $0.2 per share, you only have 3 days left to buy the shares before its ex-dividend date, 07 March 2018, in time for dividends payable on the 01 April 2018. Should you diversify into MDU Resources Group 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. See our latest analysis for MDU Resources Group
5 questions to ask before buying a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is its annual yield among the top 25% of dividend payers?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share amount increased over the past?
- Does earnings amply cover its dividend payments?
- Will it have the ability to keep paying its dividends going forward?
How does MDU Resources Group fare?
The current trailing twelve-month payout ratio for the stock is 53.26%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 51.24%, leading to a dividend yield of around 3.06%.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. MDU has increased its DPS from $0.58 to $0.79 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes MDU a true dividend rockstar. Compared to its peers, MDU Resources Group generates a yield of 2.99%, which is on the low-side for Integrated Utilities stocks.
With these dividend metrics in mind, I definitely rank MDU Resources Group as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. I’ve put together three pertinent factors you should further examine:
- Valuation: What is MDU 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 MDU is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on MDU Resources Group’s board and the CEO’s back ground.
- 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.