On the 29 March 2018, SpartanNash Company (NASDAQ:SPTN) will be paying shareholders an upcoming dividend amount of $0.18 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 3 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 SpartanNash’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for SpartanNash
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Does it pay an annual yield higher than 75% of dividend payers?
- Does it consistently pay out dividends without missing a payment or significantly cutting payout?
- Has it increased its dividend per share amount over the past?
- Is it 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 SpartanNash fit our criteria?
The current payout ratio for SPTN is negative, which means that it is loss-making, and paying its dividend from its retained earnings. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. SPTN has increased its DPS from $0.2 to $0.72 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes SPTN a true dividend rockstar. Compared to its peers, SpartanNash generates a yield of 3.88%, which is high for Consumer Retailing stocks.
Taking into account the dividend metrics, SpartanNash ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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 essential aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SPTN’s future growth? Take a look at our free research report of analyst consensus for SPTN’s outlook.
- Valuation: What is SPTN 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 SPTN 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.