Only 3 Days Left To Cash In On Resources Connection Inc (NASDAQ:RECN) Dividend, Is It Worth Buying?
Attention dividend hunters! Resources Connection Inc (NASDAQ:RECN) will be distributing its dividend of $0.12 per share on the 15 March 2018, and will start trading ex-dividend in 3 days time on the 14 February 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Resources Connection can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Resources Connection
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key 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 risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Will the company be able to keep paying dividend based on the future earnings growth?
How does Resources Connection fare?
The current trailing twelve-month payout ratio for the stock is 78.15%, 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. The reality is that it is too early to consider Resources Connection as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Resources Connection produces a yield of 3.20%, which is high for Professional Services stocks.
Next Steps:
If you are building an income portfolio, then Resources Connection is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, 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. There are three relevant factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for RECN’s future growth? Take a look at our free research report of analyst consensus for RECN’s outlook.
2. Valuation: What is RECN 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 RECN is currently mispriced by the market.
3. 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.
