Only 3 Days Left Before Mackinac Financial Corporation (NASDAQ:MFNC) Will Start Trading Ex-Dividend, Should You Buy?
Important news for shareholders and potential investors in Mackinac Financial Corporation (NASDAQ:MFNC): The dividend payment of $0.12 per share will be distributed into shareholder on 09 January 2018, and the stock will begin trading ex-dividend at an earlier date, 27 December 2017. Should you diversify into Mackinac Financial and boost your portfolio income stream? Well, keep on reading because today, 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 Mackinac Financial
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 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?
Can it afford to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
Does Mackinac Financial pass our checks?
The current payout ratio for the stock is 40.14%, which means that the dividend is 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 Mackinac Financial as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, Mackinac Financial has a yield of 2.96%, which is on the low-side for banks stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in Mackinac Financial right now, in terms of its dividend attributes. It may be beneficial exploring other income stocks as alternatives to Mackinac Financial or even look at high-growth stocks to supplement your steady income stocks. I recommend 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? Now you know to keep in mind the reason why investors should be careful investing in Mackinac Financial for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. 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. Dig deeper in our latest free fundmental analysis to explore other aspects of Mackinac Financial.
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.
