Mobile Mini Inc (NASDAQ:MINI): Ex-Dividend Is In 4 Days
Important news for shareholders and potential investors in Mobile Mini Inc (NASDAQ:MINI): The dividend payment of US$0.25 per share will be distributed to shareholders on 28 November 2018, and the stock will begin trading ex-dividend at an earlier date, 13 November 2018. Should you diversify into Mobile Mini and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
See our latest analysis for Mobile Mini
5 checks you should use to assess a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is it the top 25% annual dividend yield payer?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share amount increased over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
Does Mobile Mini pass our checks?
Mobile Mini has a trailing twelve-month payout ratio of 62%, which means that the dividend is covered by earnings. However, going forward, analysts expect MINI’s payout to fall to 54% of its earnings, which leads to a dividend yield of around 2.6%. In addition to this, EPS is also forecasted to fall to $1.48 in the upcoming year. The lower EPS on top of a lower payout ratio will lead to a fall in dividend payment moving forward.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view Mobile Mini as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Mobile Mini has a yield of 2.4%, which is high for Commercial Services stocks but still below the market’s top dividend payers.
Next Steps:
If Mobile Mini is in your portfolio for cash-generating reasons, there may be better alternatives out there. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. 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. I’ve put together three key aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MINI’s future growth? Take a look at our free research report of analyst consensus for MINI’s outlook.
Valuation: What is MINI 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 MINI is currently mispriced by the market.
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 editorial-team@simplywallst.com.
