What Makes Greene King plc (LON:GNK) A Great Dividend Stock?
Greene King plc (LSE:GNK) has pleased shareholders over the past 10 years, paying out an average dividend of 5.00% annually. The stock currently pays out a dividend yield of 6.10%, and has a market cap of UK£1.69B. Let’s dig deeper into whether Greene King should have a place in your portfolio. See our latest analysis for Greene King
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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 the amount of dividend per share grown over the past?
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 well does Greene King fit our criteria?
The company currently pays out 58.91% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect GNK’s payout to remain around the same level at 54.78% of its earnings, which leads to a dividend yield of around 6.21%. In addition to this, EPS is forecasted to fall to £0.55 in the upcoming year. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although GNK’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, Greene King produces a yield of 6.10%, which is high for Hospitality stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Greene King is definitely worth keeping an eye on for someone 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. I’ve put together three fundamental factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for GNK’s future growth? Take a look at our free research report of analyst consensus for GNK’s outlook.
Valuation: What is GNK 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 GNK is currently mispriced by the market.
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.
