Only 3 Days Left To Cash In On Ryder System Inc (R) Dividend, Should You Buy?
If you are interested in cashing in on Ryder System Inc’s (NYSE:R) upcoming dividend of $0.46 per share, you only have 3 days left to buy the shares before its ex-dividend date, 17 November 2017, in time for dividends payable on the 15 December 2017. Is this future income a persuasive enough catalyst for investors to think about R 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 R
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
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 dividend per share risen in the past couple of years?
Can it afford to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Ryder System fare?
The company currently pays out 47.63% of its earnings as a dividend, which means that the dividend is covered by earnings. Looking forward, analysts expect R to pay out 34.50% of its earnings leading to a dividend yield of 2.42%. In addition to this, EPS should increase to $4.89. This means the company should be able to continue to payout dividends. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. R has increased its DPS from $0.84 to $1.84 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. This is an impressive feat, which makes R a true dividend rockstar. Relative to peers, R generates a yield of 2.33%, which is high for road and rail stocks but still below the market’s top dividend payers.
What this means for you:
Are you a shareholder? With Ryder System 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 current portfolio, it may be worth exploring other dividend stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest 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? Taking into account the dividend metrics, Ryder System ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. No matter how much of a cash cow Ryder System is, it is not worth an infinite price. Can you buy R for a great price? Check 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.
