Grab ATCO Ltd (TSE:ACO.X) Today With A Solid 3.44% Dividend Yield
If you are an income investor, then ATCO Ltd (TSX:ACO.X) should be on your radar. ATCO Ltd. engages in structures and logistics, electricity, and pipelines and liquids businesses worldwide. Over the past 10 years, the CA$5.01B market cap company has been growing its dividend payments, from CA$0.47 to CA$1.51. Currently yielding 3.44%, let’s take a closer look at ATCO’s dividend profile. Check out our latest analysis for ATCO
What Is A Dividend Rock Star?
It is a stock that pays a consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It can afford to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward
High Yield And Dependable
ATCO’s yield sits at 3.44%, which is on the low-side for integrated utilities stocks. But the real reason ATCO stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
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. In the case of ACO.X it has increased its DPS from CA$0.47 to CA$1.51 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 ACO.X a true dividend rockstar. The current payout ratio for the stock is 49.81%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 48.99%, leading to a dividend yield of around 3.51%. Moreover, EPS should increase to CA$2.95.
Next Steps:
With ATCO producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. However, given 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. I’ve put together three essential factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for ACO.X’s future growth? Take a look at our free research report of analyst consensus for ACO.X’s outlook.
2. Valuation: What is ACO.X 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 ACO.X is currently mispriced by the market.
3. Other Dividend Rockstars: Are there strong dividend payers with better 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.
