Only 3 Days Left To Sonoco Products Company (NYSE:SON)’s Ex-Dividend Date, Should You Buy?
On the 09 March 2018, Sonoco Products Company (NYSE:SON) will be paying shareholders an upcoming dividend amount of $0.39 per share. However, investors must have bought the company’s stock before 27 February 2018 in order to qualify for the payment. That means you have only 3 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Sonoco Products’s latest financial data to analyse its dividend characteristics. View our latest analysis for Sonoco Products
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It can afford to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future
High Yield And Dependable
Sonoco Products’s dividend yield stands at 3.23%, which is high for Packaging stocks. But the real reason Sonoco Products stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of SON it has increased its DPS from $1.04 to $1.56 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. The current trailing twelve-month payout ratio for the stock is 88.58%, meaning the dividend is sufficiently covered by earnings. However, going forward, analysts expect SON’s payout to fall to 49.66% of its earnings, which leads to a dividend yield of 3.43%. However, EPS should increase to $3.15, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
Next Steps:
There aren’t many other stocks out there with the same track record as Sonoco Products, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given 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. There are three key aspects you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for SON’s future growth? Take a look at our free research report of analyst consensus for SON’s outlook.
2. Valuation: What is SON 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 SON is currently mispriced by the market.
3. Other Dividend Rockstars: Are there strong dividend payers with better 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.
