Investors who want to cash in on Bank of South Carolina Corporation’s (NASDAQ:BKSC) upcoming dividend of $0.15 per share have only 3 days left to buy the shares before its ex-dividend date, 29 December 2017, in time for dividends payable on the 31 January 2018. Is this future income a persuasive enough catalyst for investors to think about Bank of South Carolina as an investment today? Below, 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 Bank of South Carolina
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does Bank of South Carolina fit our criteria?
The current payout ratio for the stock is 52.74%, meaning the dividend is sufficiently 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. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. In terms of its peers, Bank of South Carolina generates a yield of 3.18%, which is on the low-side for banks stocks.
What this means for you:
Are you a shareholder? Investors of Bank of South Carolina can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Bank of South Carolina is one worth keeping around in your income portfolio. However, depending on your current portfolio, it may be valuable exploring other dividend stocks to improve your diversification, or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Keeping in mind the dividend characteristics above, Bank of South Carolina is definitely worth considering for investors looking to build a dedicated income portfolio. As with all investments, 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. No matter how much of a cash cow Bank of South Carolina is, it is not worth an infinite price. Is Bank of South Carolina still a bargain? Dig deeper in our latest free analysis to find out!
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.