Is Haverty Furniture Companies Inc (NYSE:HVT) A Good Pick For Income Investors?
Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. Haverty Furniture Companies Inc (NYSE:HVT) has returned to shareholders over the past 10 years, an average dividend yield of 1.00% annually. Does Haverty Furniture Companies tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. See our latest analysis for Haverty Furniture Companies
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has it increased its dividend per share amount over the past?
Is it able to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Haverty Furniture Companies pass our checks?
The current trailing twelve-month payout ratio for the stock is 37.07%, 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. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Relative to peers, Haverty Furniture Companies has a yield of 2.78%, which is high for Specialty Retail stocks but still below the market’s top dividend payers.
Next Steps:
If Haverty Furniture Companies is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three pertinent factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for HVT’s future growth? Take a look at our free research report of analyst consensus for HVT’s outlook.
2. Valuation: What is HVT 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 HVT is currently mispriced by the market.
3. 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.
