Interested In Shaw Communications Inc (TSX:SJRB)’s Upcoming $0.1 Dividend? You Have 3 Days Left
Attention dividend hunters! Shaw Communications Inc (TSX:SJR.B) will be distributing its dividend of CA$0.1 per share in 3 days time, on the 29 November 2017, and will start trading ex-dividend on the 14 November 2017. Should you diversify into SJR.B 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. Check out our latest analysis for Shaw Communications
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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?
Can it afford to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Shaw Communications pass our checks?
Shaw Communications has a payout ratio of 105.98%, meaning the dividend is not sufficiently covered by its earnings. Looking forward, analysts expect SJR.B to pay out 79.05% of its earnings and dividends yield to be around 4.25%. Furthermore, EPS should increase to CA$1.28. This means the company should be able to continue to payout dividends. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of SJR.B it has increased its DPS from CA$0.72 to CA$1.19 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. In terms of its peers, Shaw Communications produces a yield of 4.11%, which is high for media stocks.
What this means for you:
Are you a shareholder? Investors of Shaw Communications can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, SJR.B is one worth keeping around in your income portfolio. However, depending on your current portfolio, it may be worth exploring other dividend stocks to enhance your diversification, or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue 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? Considering the dividend attributes we analyzed above, SJR.B is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. Whether or not you like SJR.B as a dividend stock, it’s still worth checking the price tag. Can you still benefit from a mispricing of the stock? Dig deeper in 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.
