Core-Mark Holding Company Inc (NASDAQ:CORE): What You Have To Know Before Buying For The Upcoming Dividend
Have you been keeping an eye on Core-Mark Holding Company Inc’s (NASDAQ:CORE) upcoming dividend of $0.1 per share payable on the 29 March 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 09 March 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Core-Mark Holding Company’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Core-Mark Holding Company
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
Is it the top 25% annual dividend yield payer?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share amount increased over the past?
Is is able to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
Does Core-Mark Holding Company pass our checks?
Core-Mark Holding Company has a trailing twelve-month payout ratio of 49.76%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. The reality is that it is too early to consider Core-Mark Holding Company as a dividend investment. It has only been consistently paying dividends for 6 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Core-Mark Holding Company produces a yield of 1.94%, which is on the low-side for Retail Distributors stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in Core-Mark Holding Company for the dividend. 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. Below, I’ve compiled three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CORE’s future growth? Take a look at our free research report of analyst consensus for CORE’s outlook.
Valuation: What is CORE 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 CORE 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 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.
