Mapfre SA (BME:MAP) has pleased shareholders over the past 10 years, paying out an average dividend of 6.0% annually. The stock currently pays out a dividend yield of 5.7%, and has a market cap of €7.76b. Let’s dig deeper into whether Mapfre should have a place in your portfolio.
Here’s how I find good dividend stocks
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 amount increased over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Will the company be able to keep paying dividend based on the future earnings growth?
How does Mapfre fare?
The current trailing twelve-month payout ratio for the stock is 37.6%, which means that the dividend is covered by earnings. Going forward, analysts expect MAP’s payout to increase to 56.9% of its earnings, which leads to a dividend yield of 6.8%. Moreover, EPS should increase to €0.29. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although MAP’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.
Relative to peers, Mapfre has a yield of 5.7%, which is high for Insurance stocks.
Taking into account the dividend metrics, Mapfre ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that 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 key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MAP’s future growth? Take a look at our free research report of analyst consensus for MAP’s outlook.
- Valuation: What is MAP 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 MAP 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 past 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. For errors that warrant correction please contact the editor at email@example.com.