Macy’s Inc (M): Dividend Is Coming In 3 Days, Should You Buy?
If you are interested in cashing in on Macy’s Inc’s (NYSE:M) upcoming dividend of $0.38 per share, you only have 3 days left to buy the shares before its ex-dividend date, 14 December 2017, in time for dividends payable on the 02 January 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine M’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Macy’s
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is its annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment or significantly cutting payout?
Has dividend per share amount increased over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it have the ability to keep paying its dividends going forward?
How well does Macy’s fit our criteria?
The current payout ratio for the stock is 66.15%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 63.40%, leading to a dividend yield of 6.08%. Furthermore, EPS should increase to $2.79. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Relative to peers, Macy’s produces a yield of 5.85%, which is high for multiline retail stocks.
What this means for you:
Are you a shareholder? Investors of Macy’s can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, M is one worth keeping around in your income portfolio. However, depending on your current holdings, it may be worth exploring other income stocks to enhance your diversification, or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? With this in mind, I definitely rank Macy’s as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. As with all investments, 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. No matter how much of a cash cow Macy’s is, it is not worth an infinite price. Is M still a bargain? Check our latest free analysis to find out!
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.
