Only 3 Days Left To Cash In On Macy’s Inc (NYSE:M) Dividend, Is It Worth Buying?
Have you been keeping an eye on Macy’s Inc’s (NYSE:M) upcoming dividend of $0.38 per share payable on the 02 April 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 14 March 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Macy’s’s latest financial data to analyse its dividend attributes. View our latest analysis for Macy’s
Here’s how I find good dividend stocks
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 paid dividend every year without dramatically reducing payout in the past?
Has it increased its dividend per share amount over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
How well does Macy’s fit our criteria?
The current trailing twelve-month payout ratio for the stock is 29.81%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 54.56%, leading to a dividend yield of 5.65%. However, EPS is forecasted to fall to $3.59 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although M’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Macy’s generates a yield of 5.23%, which is high for Multiline Retail stocks.
Next Steps:
Taking into account the dividend metrics, Macy’s ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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 important factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for M’s future growth? Take a look at our free research report of analyst consensus for M’s outlook.
Valuation: What is M 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 M is currently mispriced by the market.
Other 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.
