Is Buying Tiffany & Co (NYSE:TIF) For Its Upcoming $0.5 Dividend A Good Choice?
On the 10 January 2018, Tiffany & Co (NYSE:TIF) will be paying shareholders an upcoming dividend amount of $0.5 per share. However, investors must have bought the company’s stock before 19 December 2017 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Tiffany 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 Tiffany
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has the amount of dividend per share grown over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
How does Tiffany fare?
Tiffany has a payout ratio of 50.76%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 47.96%, leading to a dividend yield of around 2.00%. Furthermore, EPS should increase to $4.27. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. TIF has increased its DPS from $0.6 to $2 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. These are all positive signs of a great, reliable dividend stock. Relative to peers, Tiffany generates a yield of 2.01%, which is on the low-side for specialty retail stocks.
What this means for you:
Are you a shareholder? Investors of Tiffany can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Tiffany is one worth keeping around in your income portfolio. However, depending on your portfolio composition, it may be beneficial exploring other income stocks to increase diversification, or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking into account the dividend metrics, Tiffany ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Another aspect to consider for Tiffany is how much it’s actually worth. Is Tiffany still a bargain? Dig deeper in our latest free analysis to find out!
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.
