Camping World Holdings Inc (NYSE:CWH) Will Pay US$0.15 In Dividends
Investors who want to cash in on Camping World Holdings Inc’s (NYSE:CWH) upcoming dividend of US$0.15 per share have only 4 days left to buy the shares before its ex-dividend date, 13 September 2018, in time for dividends payable on the 28 September 2018. Should you diversify into Camping World Holdings 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.
View our latest analysis for Camping World Holdings
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
Is their annual yield among the top 25% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Camping World Holdings fit our criteria?
The current trailing twelve-month payout ratio for the stock is 33.8%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 7.1%, leading to a dividend yield of around 1.3%. However, EPS should increase to $2.06, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider Camping World Holdings as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Camping World Holdings produces a yield of 3.0%, which is high for Specialty Retail stocks but still below the market’s top dividend payers.
Next Steps:
If Camping World Holdings is in your portfolio for cash-generating reasons, there may be better alternatives out there. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CWH’s future growth? Take a look at our free research report of analyst consensus for CWH’s outlook.
Valuation: What is CWH 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 CWH is currently mispriced by the market.
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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
