Should Income Investors Buy TriCo Bancshares (NASDAQ:TCBK) Before Its Ex-Dividend?
On the 30 March 2018, TriCo Bancshares (NASDAQ:TCBK) will be paying shareholders an upcoming dividend amount of $0.17 per share. However, investors must have bought the company’s stock before 15 March 2018 in order to qualify for the payment. That means you have only 7 days left! Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at TriCo Bancshares’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for TriCo Bancshares
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is their annual yield among the top 25% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does TriCo Bancshares fare?
The current trailing twelve-month payout ratio for the stock is 29.24%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 27.32%, leading to a dividend yield of around 1.97%. Moreover, EPS should increase to $2.36. 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, TriCo Bancshares has a yield of 1.75%, which is on the low-side for Banks stocks.
Next Steps:
If you are building an income portfolio, then TriCo Bancshares is a complicated choice since it has some positive aspects as well as negative ones. 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 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 relevant aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for TCBK’s future growth? Take a look at our free research report of analyst consensus for TCBK’s outlook.
Valuation: What is TCBK 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 TCBK is currently mispriced by the market.
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.
