Cohort PLC (LON:CHRT): What You Have To Know Before Buying For The Upcoming Dividend
Have you been keeping an eye on Cohort PLC’s (LON:CHRT) upcoming dividend of UK£0.057 per share payable on the 19 September 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 23 August 2018. Should you diversify into Cohort 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 Cohort
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share amount increased over the past?
Can it afford 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 Cohort pass our checks?
The company currently pays out 41.27% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 30.44%, leading to a dividend yield of around 2.47%. However, EPS should increase to £0.21, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. CHRT has increased its DPS from £0.015 to £0.082 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 CHRT a true dividend rockstar.
Relative to peers, Cohort has a yield of 2.06%, which is on the low-side for Aerospace & Defense stocks.
Next Steps:
With this in mind, I definitely rank Cohort as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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. There are three key factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for CHRT’s future growth? Take a look at our free research report of analyst consensus for CHRT’s outlook.
Valuation: What is CHRT 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 CHRT is currently mispriced by the market.
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 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.
