Oconee Federal Financial Corp (NASDAQ:OFED): 4 Days To Buy Before The Ex-Dividend Date
Attention dividend hunters! Oconee Federal Financial Corp (NASDAQ:OFED) will be distributing its dividend of US$0.10 per share on the 21 November 2018, and will start trading ex-dividend in 4 days time on the 07 November 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Oconee Federal Financial’s latest financial data to analyse its dividend characteristics.
Check out our latest analysis for Oconee Federal Financial
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 consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has it increased its dividend per share amount 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 Oconee Federal Financial fit our criteria?
The current trailing twelve-month payout ratio for the stock is 75%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Oconee Federal Financial as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
In terms of its peers, Oconee Federal Financial produces a yield of 1.6%, which is on the low-side for Mortgage stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in Oconee Federal Financial for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three essential aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for OFED’s future growth? Take a look at our free research report of analyst consensus for OFED’s outlook.
Valuation: What is OFED 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 OFED 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.
