On the 29 June 2018, Bijou Brigitte modische Accessoires Aktiengesellschaft (FRA:BIJ) will be paying shareholders an upcoming dividend amount of €3.00 per share. However, investors must have bought the company’s stock before 27 June 2018 in order to qualify for the payment. That means you have only 2 days left! What does this mean for current shareholders and potential investors? Below, I will explain how holding Bijou Brigitte modische Accessoires can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Bijou Brigitte modische Accessoires
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is its annual yield among the top 25% of dividend-paying companies?
- 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 is able to pay the current rate of dividends from its earnings?
- Will it have the ability to keep paying its dividends going forward?
How well does Bijou Brigitte modische Accessoires fit our criteria?
The current trailing twelve-month payout ratio for BIJ is 109.17%, which means that the dividend is not well-covered by its earnings. Going forward, analysts expect BIJ’s payout to remain around the same level at 114.63% of its earnings, which leads to a dividend yield of around 5.87%. Furthermore, EPS should increase to €2.81.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Not only have dividend payouts from Bijou Brigitte modische Accessoires fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.
Compared to its peers, Bijou Brigitte modische Accessoires has a yield of 6.07%, which is high for Luxury stocks.
After digging a little deeper into Bijou Brigitte modische Accessoires’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. 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. There are three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BIJ’s future growth? Take a look at our free research report of analyst consensus for BIJ’s outlook.
- Valuation: What is BIJ 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 BIJ 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.