Interested In TESSCO Technologies Incorporated (TESS)’s Upcoming $0.2 Dividend? You Have 3 Days Left
On the 22 November 2017, TESSCO Technologies Incorporated (NASDAQ:TESS) will be paying shareholders an upcoming dividend amount of $0.2 per share. However, investors must have bought the company’s stock before 07 November 2017 in order to qualify for the payment. That means you have only 3 days left! What does this mean for current shareholders and potential investors? Below, I will explain how holding TESS can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. Check out our latest analysis for TESSCO Technologies
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
Is it the top 25% annual dividend yield payer?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount over the past?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How well does TESSCO Technologies fit our criteria?
TESS currently pays out twice what it is earning, meaning that the dividend is predominantly funded by retained earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider TESSCO Technologies as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, TESS has a yield of 5.08%, which is high for communications equipment stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in TESS right now, in terms of its dividend attributes. It may be valuable exploring other dividend stocks as alternatives to TESS or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? After digging a little deeper into TESS’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. But if you are not exclusively a dividend investor, TESS could still be an interesting investment opportunity. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Dig deeper in our latest free fundmental analysis to explore other aspects of TESS.
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.
