On the 01 January 2018, Greif Inc (NYSE:GEF) will be paying shareholders an upcoming dividend amount of $0.42 per share. However, investors must have bought the company’s stock before 15 December 2017 in order to qualify for the payment. That means you have only 3 days left! So if you want to cash in on GEF’s dividend payment and are not yet a shareholder, you have only few days left! Today I am going to take a look at GEF’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Greif
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 its annual yield among the top 25% of dividend-paying companies?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has the amount of dividend per share grown over the past?
- Does earnings amply cover its dividend payments?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Greif pass our checks?
Greif has a payout ratio of 67.71%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 40.49%, leading to a dividend yield of around 2.62%. However, EPS should increase to $3.42, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of GEF it has increased its DPS from $1.12 to $1.68 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes GEF a true dividend rockstar. In terms of its peers, Greif produces a yield of 2.62%, which is high for containers and packaging stocks but still below the market’s top dividend payers.
What this means for you:
Are you a shareholder? With Greif producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. However, depending on your portfolio composition, it may be beneficial exploring other income stocks to improve your diversification, or even look at high-growth stocks to complement your steady income stocks. I recommend continuing 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, GEF 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. Whether or not you like GEF as a dividend stock, it’s still worth checking the price tag. Is Greif overvalued or is it actually a bargain? Take a look at 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.