Only 3 Days Left Before Big 5 Sporting Goods Corporation (NASDAQ:BGFV) Will Start Trading Ex-Dividend, Is It Worth Buying?
Important news for shareholders and potential investors in Big 5 Sporting Goods Corporation (NASDAQ:BGFV): The dividend payment of $0.15 per share will be distributed into shareholder on 23 March 2018, and the stock will begin trading ex-dividend at an earlier date, 08 March 2018. Should you diversify into Big 5 Sporting Goods 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. Check out our latest analysis for Big 5 Sporting Goods
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it paying an annual yield above 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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?
How does Big 5 Sporting Goods fare?
The company currently pays out more than double of its earnings as a dividend, according to its trailing trailing twelve-month data, meaning that the dividend is predominantly funded by retained earnings. Going forward, analysts expect BGFV’s payout to fall to 108.74% of its earnings, which leads to a dividend yield of 9.38%.
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. Compared to its peers, Big 5 Sporting Goods produces a yield of 9.38%, which is high for Specialty Retail stocks.
Next Steps:
Whilst there are few things you may like about Big 5 Sporting Goods from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three fundamental factors you should further research:
Historical Performance: What has BGFV’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Big 5 Sporting Goods’s board and the CEO’s back ground.
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 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.
