Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Polymetal International Plc (LSE:POLY) has returned to shareholders over the past 6 years, an average dividend yield of 3.00% annually. Should it have a place in your portfolio? Let’s take a look at Polymetal International in more detail. Check out our latest analysis for Polymetal International
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- 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?
- Does earnings amply cover its dividend payments?
- Will it be able to continue to payout at the current rate in the future?
Does Polymetal International pass our checks?
The current trailing twelve-month payout ratio for the stock is 53.43%, which means that the dividend is covered by earnings. Going forward, analysts expect POLY’s payout to remain around the same level at 48.89% of its earnings, which leads to a dividend yield of 5.64%. In addition to this, EPS should increase to $0.92. 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. The reality is that it is too early to consider Polymetal International as a dividend investment. It has only been consistently paying dividends for 6 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Polymetal International has a yield of 4.05%, which is on the low-side for Metals and Mining stocks.
With these dividend metrics in mind, I definitely rank Polymetal International as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. Below, I’ve compiled three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for POLY’s future growth? Take a look at our free research report of analyst consensus for POLY’s outlook.
- Valuation: What is POLY 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 POLY 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.