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Flexsteel Industries, Inc. (NASDAQ:FLXS): Ex-Dividend Is In 4 Days

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If you are interested in cashing in on Flexsteel Industries, Inc.’s (NASDAQ:FLXS) upcoming dividend of US$0.22 per share, you only have 4 days left to buy the shares before its ex-dividend date, 14 March 2019, in time for dividends payable on the 29 March 2019. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Flexsteel Industries’s latest financial data to analyse its dividend characteristics.

See our latest analysis for Flexsteel Industries

How I analyze a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

  • Is their annual yield among the top 25% 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 its earnings sufficient to payout dividend at the current rate?

  • Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

NasdaqGS:FLXS Historical Dividend Yield, March 9th 2019
NasdaqGS:FLXS Historical Dividend Yield, March 9th 2019

How well does Flexsteel Industries fit our criteria?

Flexsteel Industries has a trailing twelve-month payout ratio of 85%, 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.

When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. FLXS has increased its DPS from $0.52 to $0.88 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.

Compared to its peers, Flexsteel Industries produces a yield of 3.6%, which is high for Consumer Durables stocks but still below the market’s top dividend payers.

Next Steps:

Considering the dividend attributes we analyzed above, Flexsteel Industries is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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 essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for FLXS’s future growth? Take a look at our free research report of analyst consensus for FLXS’s outlook.

  2. Valuation: What is FLXS 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 FLXS is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.