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Only 2 Days Left Until Republic Bancorp Inc (NASDAQ:RBCA.A) Trades Ex-Dividend,

James Harlett

Investors who want to cash in on Republic Bancorp Inc’s (NASDAQ:RBCA.A) upcoming dividend of US$0.24 per share have only 2 days left to buy the shares before its ex-dividend date, 20 September 2018, in time for dividends payable on the 19 October 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Republic Bancorp can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.

See our latest analysis for Republic Bancorp

5 checks you should use to assess a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is it paying an annual yield above 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?

  • Does earnings amply cover its dividend payments?

  • Will it be able to continue to payout at the current rate in the future?

NasdaqGS:RBCA.A Historical Dividend Yield September 17th 18
NasdaqGS:RBCA.A Historical Dividend Yield September 17th 18

How well does Republic Bancorp fit our criteria?

The company currently pays out 33.0% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. However, going forward, analysts expect RBCA.A’s payout to fall to 26.4% of its earnings, which leads to a dividend yield of 2.0%. However, EPS should increase to $3.41, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of RBCA.A it has increased its DPS from $0.48 to $0.97 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.

In terms of its peers, Republic Bancorp produces a yield of 2.0%, which is on the low-side for Banks stocks.

Next Steps:

Taking into account the dividend metrics, Republic Bancorp 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, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three relevant aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for RBCA.A’s future growth? Take a look at our free research report of analyst consensus for RBCA.A’s outlook.

  2. Valuation: What is RBCA.A 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 RBCA.A is currently mispriced by the market.

  3. 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 editorial-team@simplywallst.com.