Only 3 Days Left To Reliance Steel & Aluminum Co (RS)’s Ex-Dividend Date, Should You Buy?
Shares of Reliance Steel & Aluminum Co (NYSE:RS) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.45 per share, investors must have owned the shares prior to 16 November 2017, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Is this future income a persuasive enough catalyst for investors to think about RS as an investment today? Below, 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 RS
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment or significantly cutting payout?
Has it increased its dividend per share amount over the past?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How does Reliance Steel & Aluminum fare?
The company currently pays out 34.58% of its earnings as a dividend, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 29.89% and dividends yield to be around 2.45%. Furthermore, EPS should increase to $5.85. This means the company should be able to continue to payout dividends. 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. In the case of RS it has increased its DPS from $0.32 to $1.8 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. Relative to peers, RS has a yield of 2.35%, which is on the low-side for metals and mining stocks.
What this means for you:
Are you a shareholder? Investors of Reliance Steel & Aluminum can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, RS is one worth keeping around in your income portfolio. However, depending on your portfolio composition, it may be valuable exploring other income stocks to improve your diversification, or even look at high-growth stocks to complement your steady income stocks. I suggest 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? Keeping in mind the dividend characteristics above, RS is definitely worth considering for investors looking to build a dedicated income portfolio. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Whether or not you like RS as a dividend stock, it’s still worth checking the price tag. Can you buy RS for a great price? Dig deeper in our latest free analysis to find out!
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.
