Interested In Investec plc (LSE:INVP)’s Upcoming £0.11 Dividend? You Have 3 Days Left
On the 20 December 2017, Investec plc (LSE:INVP) will be paying shareholders an upcoming dividend amount of £0.11 per share. However, investors must have bought the company’s stock before 07 December 2017 in order to qualify for the payment. That means you have only 3 days left! Is this future income stream a compelling catalyst for dividend investors to think about INVP as an investment today? Let’s take a look at INVP’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Investec
5 checks you should use to assess 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 dividend per share risen in the past couple of years?
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 does Investec fare?
Investec has a payout ratio of 43.05%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 47.17%, leading to a dividend yield of around 5.35%. Moreover, EPS is forecasted to fall to £0.54 in the upcoming year. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Not only have dividend payouts from Investec 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, INVP has a yield of 4.59%, which is high for capital markets stocks.
What this means for you:
Are you a shareholder?
Are you a shareholder? With Investec producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. However, depending on your portfolio composition, it may be valuable exploring other dividend stocks to improve your diversification, or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking into account the dividend metrics, Investec ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. As with all investments, 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. Another aspect to consider for INVP is how much it’s actually worth. Can you still benefit from a mispricing of the stock? Take a look at our latest free analysis to find out!
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.
