Grab Meredith Corporation (NYSE:MDP) Today With A Solid 4.49% Dividend Yield
Over the past 10 years Meredith Corporation (NYSE:MDP) has grown its dividend payouts from $0.86 to $2.18. With a market cap of US$2.18B, Meredith pays out 74.25% of its earnings, leading to a 4.49% yield. Let me elaborate on you why the stock stands out for income investors like myself. See our latest analysis for Meredith
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 dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future
High Yield And Dependable
The company’s dividend yield stands at 4.49%, which is high for Media stocks. But the real reason Meredith 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.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. MDP has increased its DPS from $0.86 to $2.18 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. Meredith has a trailing twelve-month payout ratio of 74.25%, meaning the dividend is sufficiently covered by earnings. However, going forward, analysts expect MDP’s payout to fall to 21.93% of its earnings, which leads to a dividend yield of 4.50%. However, EPS should increase to $4.89, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
Next Steps:
Meredith ticks all the boxes for what I look for in a dividend stock. If you are looking to build an income focused portfolio, this could be one to include. 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 important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for MDP’s future growth? Take a look at our free research report of analyst consensus for MDP’s outlook.
Valuation: What is MDP 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 MDP is currently mispriced by the market.
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.
