Eversource Energy (NYSE:ES): What You Have To Know Before Buying For The Upcoming Dividend
If you are interested in cashing in on Eversource Energy’s (NYSE:ES) upcoming dividend of $0.51 per share, you only have 3 days left to buy the shares before its ex-dividend date, 23 May 2018, in time for dividends payable on the 29 June 2018. Should you diversify into Eversource Energy 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. Check out our latest analysis for Eversource Energy
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share risen in the past couple of years?
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?
How does Eversource Energy fare?
Eversource Energy has a trailing twelve-month payout ratio of 61.22%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 61.84%, leading to a dividend yield of 3.76%. In addition to this, EPS should increase to $3.31. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. ES has increased its DPS from $0.85 to $2.02 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. Relative to peers, Eversource Energy has a yield of 3.52%, which is on the low-side for Electric Utilities stocks.
Next Steps:
With this in mind, I definitely rank Eversource Energy 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, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three pertinent factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for ES’s future growth? Take a look at our free research report of analyst consensus for ES’s outlook.
Historical Performance: What has ES’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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 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.
