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Only 3 Days Left Before First Hawaiian Inc (NASDAQ:FHB) Will Start Trading Ex-Dividend, Is It Worth Buying?

Attention dividend hunters! First Hawaiian Inc (NASDAQ:FHB) will be distributing its dividend of $0.24 per share on the 08 June 2018, and will start trading ex-dividend in 3 days time on the 25 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into First Hawaiian’s latest financial data to analyse its dividend attributes. Check out our latest analysis for First Hawaiian

5 questions I ask before picking a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Is it paying an annual yield above 75% of dividend payers?

  • Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

  • Has the amount of dividend per share grown over the past?

  • 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?

NasdaqGS:FHB Historical Dividend Yield May 21st 18
NasdaqGS:FHB Historical Dividend Yield May 21st 18

How does First Hawaiian fare?

First Hawaiian has a trailing twelve-month payout ratio of 64.45%, which means that the dividend is covered by earnings. However, going forward, analysts expect FHB’s payout to fall to 47.74% of its earnings, which leads to a dividend yield of 3.54%. However, EPS should increase to $2.03, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. 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. Unfortunately, it is really too early to view First Hawaiian 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. Relative to peers, First Hawaiian generates a yield of 3.39%, which is on the low-side for Banks stocks.

Next Steps:

If First Hawaiian is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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. I’ve put together three fundamental factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for FHB’s future growth? Take a look at our free research report of analyst consensus for FHB’s outlook.

  2. Valuation: What is FHB 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 FHB 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.

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