The Chemours Company (NYSE:CC): Dividend Is Coming In 2 Days, Should You Buy?
Attention dividend hunters! The Chemours Company (NYSE:CC) will be distributing its dividend of US$0.25 per share on the 14 September 2018, and will start trading ex-dividend in 2 days time on the 16 August 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Chemours can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
View our latest analysis for Chemours
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 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?
Is is able to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
Does Chemours pass our checks?
Chemours has a trailing twelve-month payout ratio of 7.21%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 14.54%, leading to a dividend yield of 2.02%. In addition to this, EPS should increase to $6.35. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Chemours as a dividend investment. It has only been consistently paying dividends for 3 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Chemours produces a yield of 2.22%, which is on the low-side for Chemicals stocks.
Next Steps:
If you are building an income portfolio, then Chemours is a complicated choice since it has some positive aspects as well as negative ones. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, 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. I’ve put together three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for CC’s future growth? Take a look at our free research report of analyst consensus for CC’s outlook.
Valuation: What is CC 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 CC 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.
