Interested In TransAct Technologies Incorporated (TACT)’s Upcoming $0.09 Dividend? You Have 3 Days Left
Attention dividend hunters! TransAct Technologies Incorporated (NASDAQ:TACT) will be distributing its dividend of $0.09 per share in 3 days time, on the 15 December 2017, and will start trading ex-dividend on the 17 November 2017. So if you want to cash in on TACT’s dividend payment and are not yet a shareholder, you have only few days left! Today I am going to take a look at TACT’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for TACT
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Does it pay an annual yield higher than 75% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does TransAct Technologies fit our criteria?
The current payout ratio for the stock is 50.59%, which means that the dividend is covered by 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 is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view TransAct Technologies as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, TACT generates a yield of 2.79%, which is high for technology hardware, storage and peripherals stocks but still below the market’s top dividend payers.
What this means for you:
Are you a shareholder? You may be wondering why TransAct Technologies is paying out dividends at all, instead of re-investing into the business to generate higher cash flows in the future. It may be valuable exploring other dividend stocks as alternatives to TACT 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 TACT’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, TACT 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 TACT.
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.
