On the 15 November 2017, Ames National Corporation (NASDAQ:ATLO) will be paying shareholders an upcoming dividend amount of $0.22 per share. However, investors must have bought the company’s stock before 31 October 2017 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into ATLO 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 ATLO
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has it increased its dividend per share amount over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Will it have the ability to keep paying its dividends going forward?
Does Ames National pass our checks?
Ames National has a payout ratio of 54.04%, which means that the dividend is covered by earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see moving forward. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. The reality facing ATLO investors is that whilst it has continued to pay shareholders dividend, there has not been any increase in the level of dividends paid in the past decade. Though this may not be a serious red flag, strong dividend stocks should always strive to increase its payout over time. Compared to its peers, ATLO has a yield of 2.88%, which is high for banks stocks but still below the market’s top dividend payers.
What this means for you:
Are you a shareholder? If ATLO is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be worth exploring other dividend stocks as alternatives to ATLO or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue 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? If you are building an income portfolio, then Ames National is a complicated choice since it has some positive aspects as well as negative ones. But if you are not exclusively a dividend investor, ATLO could still be an interesting investment opportunity. As with all investments, 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. Take a look at our latest free fundmental analysis to explore other aspects of ATLO.
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.