Shares of Camden National Corporation (NASDAQ:CAC) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.25 per share, investors must have owned the shares prior to 11 January 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Camden National’s latest financial data to analyse its dividend characteristics. See our latest analysis for Camden National
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is its annual yield among the top 25% of dividend-paying companies?
- 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?
- Is it able to pay the current rate of dividends from its earnings?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Camden National fare?
Camden National has a payout ratio of 33.65%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 32.54%, leading to a dividend yield of 2.26%. Furthermore, EPS should increase to $2.97. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of CAC it has increased its DPS from $0.64 to $1 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 CAC a true dividend rockstar. In terms of its peers, Camden National generates a yield of 2.33%, which is on the low-side for banks stocks.
What this means for you:
Are you a shareholder? Investors of Camden National can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Camden National is one worth keeping around in your income portfolio. But, depending on your portfolio composition, it may be worth exploring other income stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Keeping in mind the dividend characteristics above, Camden National is definitely worth considering for investors looking to build a dedicated income portfolio. As with all investments, 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. Whether or not you like the stock as a dividend play, it’s still worth checking the price tag. Is Camden National overvalued or is it actually a bargain? Take a look at 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.