Only 3 Days Left To Cash In On Monotype Imaging Holdings Inc (NASDAQ:TYPE) Dividend, Should You Buy?
Important news for shareholders and potential investors in Monotype Imaging Holdings Inc (NASDAQ:TYPE): The dividend payment of $0.12 per share will be distributed into shareholder on 20 April 2018, and the stock will begin trading ex-dividend at an earlier date, 29 March 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Monotype Imaging Holdings can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for Monotype Imaging Holdings
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 its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Will the company be able to keep paying dividend based on the future earnings growth?
How does Monotype Imaging Holdings fare?
The current trailing twelve-month payout ratio for TYPE is 168.70%, which means that the dividend is not well-covered by its earnings. However, going forward, analysts expect TYPE’s payout to fall into a more sustainable range of 40.01% of its earnings, which leads to a dividend yield of around 1.93%. In addition to this, EPS should increase to $0.29, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view Monotype Imaging Holdings as a dividend investment. It has only been consistently paying dividends for 6 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Monotype Imaging Holdings has a yield of 2.00%, which is high for Software stocks but still below the market’s top dividend payers.
Next Steps:
After digging a little deeper into Monotype Imaging Holdings’s yield, it’s easy to see why you should be cautious investing in the company just 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 pertinent aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for TYPE’s future growth? Take a look at our free research report of analyst consensus for TYPE’s outlook.
Valuation: What is TYPE 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 TYPE 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.
