Hess Corporation (NYSE:HES): Ex-Dividend Is In 3 Days, Should You Buy?
If you are interested in cashing in on Hess Corporation’s (NYSE:HES) upcoming dividend of $0.25 per share, you only have 3 days left to buy the shares before its ex-dividend date, 15 June 2018, in time for dividends payable on the 29 June 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Hess can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Hess
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it have the ability to keep paying its dividends going forward?
Does Hess pass our checks?
Hess has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. HES has increased its DPS from $0.4 to $1 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. In terms of its peers, Hess generates a yield of 1.62%, which is on the low-side for Oil and Gas stocks.
Next Steps:
With this in mind, I definitely rank Hess 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 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 fundamental aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for HES’s future growth? Take a look at our free research report of analyst consensus for HES’s outlook.
Valuation: What is HES 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 HES is currently mispriced by the market.
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.
