Attention dividend hunters! A & J Mucklow Group Plc (LSE:MKLW) will be distributing its dividend of £0.05 per share on the 16 April 2018, and will start trading ex-dividend in 3 days time on the 15 March 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding A & J Mucklow Group can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for A & J Mucklow Group
What Is A Dividend Rock Star?
It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It can afford to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward
High Yield And Dependable
A & J Mucklow Group’s dividend yield stands at 4.23%, which is high for REITs stocks. But the real reason A & J Mucklow Group stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. MKLW has increased its DPS from £0.16 to £0.22 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 MKLW a true dividend rockstar. A & J Mucklow Group has a trailing twelve-month payout ratio of 28.16%, which is rather low compared to other REITs. Generally, REITs are expected to pay out the majority of its earnings to provide a regular income stream for their investors. In the near future, analysts are predicting a higher payout ratio of 89.37%, leading to a dividend yield of 4.49%.
Investors of A & J Mucklow Group can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then A & J Mucklow Group is one worth keeping around. However, given this is purely a dividend analysis, 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. Below, I’ve compiled three fundamental factors you should further examine:
- Valuation: What is MKLW 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 MKLW is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on A & J Mucklow Group’s board and the CEO’s back ground.
- Other Dividend Rockstars: Are there strong dividend payers with better 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.