Should Income Investors Buy Guess’ Inc (NYSE:GES) Before Its Ex-Dividend?
On the 20 April 2018, Guess’ Inc (NYSE:GES) will be paying shareholders an upcoming dividend amount of $0.23 per share. However, investors must have bought the company’s stock before 03 April 2018 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Guess’ and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. View our latest analysis for Guess’
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it paying an annual yield above 75% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has the amount of dividend per share grown over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
How well does Guess’ fit our criteria?
The current payout ratio for GES is negative, 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. GES has increased its DPS from $0.32 to $0.9 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. Compared to its peers, Guess’ generates a yield of 4.34%, which is high for Specialty Retail stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Guess’ is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three pertinent factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for GES’s future growth? Take a look at our free research report of analyst consensus for GES’s outlook.
Valuation: What is GES 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 GES 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.
