Over the past 10 years Maiden Holdings Ltd (NASDAQ:MHLD) has returned an average of 4.00% per year from dividend payouts. The company currently pays out a dividend yield of 8.57% to shareholders, making it a relatively attractive dividend stock. Does Maiden Holdings tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. View our latest analysis for Maiden Holdings
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is its annual yield among the top 25% of dividend payers?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share risen in the past couple of years?
- Is its earnings sufficient to payout dividend at the current rate?
- Will it be able to continue to payout at the current rate in the future?
How does Maiden Holdings fare?
Maiden Holdings has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. MHLD has increased its DPS from $0.1 to $0.6 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. These are all positive signs of a great, reliable dividend stock. In terms of its peers, Maiden Holdings produces a yield of 8.57%, which is high for Insurance stocks.
Keeping in mind the dividend characteristics above, Maiden Holdings is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three relevant aspects you should further examine:
- 1. Future Outlook: What are well-informed industry analysts predicting for MHLD’s future growth? Take a look at our free research report of analyst consensus for MHLD’s outlook.
- 2. Historical Performance: What has MHLD’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 3. 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.