Inter Parfums Inc (NASDAQ:IPAR): Ex-Dividend Is In 2 Days, Should You Buy?
Important news for shareholders and potential investors in Inter Parfums Inc (NASDAQ:IPAR): The dividend payment of US$0.21 per share will be distributed into shareholder on 13 July 2018, and the stock will begin trading ex-dividend at an earlier date, 28 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Inter Parfums’s latest financial data to analyse its dividend characteristics. See our latest analysis for Inter Parfums
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:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share amount increased over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
Does Inter Parfums pass our checks?
The current trailing twelve-month payout ratio for the stock is 53.74%, 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 dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of IPAR it has increased its DPS from $0.13 to $0.84 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes IPAR a true dividend rockstar.
Compared to its peers, Inter Parfums generates a yield of 1.53%, which is on the low-side for Personal Products stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Inter Parfums is definitely worth keeping an eye on for someone looking to build a dedicated income 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. Below, I’ve compiled three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for IPAR’s future growth? Take a look at our free research report of analyst consensus for IPAR’s outlook.
Valuation: What is IPAR 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 IPAR 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.
