Only 3 Days Left To Cash In On 8point3 Energy Partners LP (NASDAQ:CAFD) Dividend, Should Investors Buy?
Investors who want to cash in on 8point3 Energy Partners LP’s (NASDAQ:CAFD) upcoming dividend of $0.28 per share have only 3 days left to buy the shares before its ex-dividend date, 02 April 2018, in time for dividends payable on the 13 April 2018. Should you diversify into 8point3 Energy Partners 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 8point3 Energy Partners
5 questions to ask before buying a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is their annual yield among the top 25% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How well does 8point3 Energy Partners fit our criteria?
8point3 Energy Partners has a trailing twelve-month payout ratio of more than 200% of earnings, which suggests that the dividend is not well-covered by earnings by any means. Furthermore, analysts are forecasting the payout ratio to remain at this high level going forward, leading to a future of uncertainty around the stability of CAFD’s dividend income. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider 8point3 Energy Partners as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, 8point3 Energy Partners produces a yield of 9.40%, which is high for Renewable Energy stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in 8point3 Energy Partners 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. I’ve put together three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CAFD’s future growth? Take a look at our free research report of analyst consensus for CAFD’s outlook.
Valuation: What is CAFD 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 CAFD 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 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.
