On the 14 March 2018, Bank of Hawaii Corporation (NYSE:BOH) will be paying shareholders an upcoming dividend amount of $0.52 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 Bank of Hawaii’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Bank of Hawaii
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
- Is it paying an annual yield above 75% of dividend payers?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share amount increased over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Will it be able to continue to payout at the current rate in the future?
How well does Bank of Hawaii fit our criteria?
Bank of Hawaii has a trailing twelve-month payout ratio of 46.71%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 49.49%, leading to a dividend yield of 2.71%. Moreover, EPS should increase to $5.19. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of BOH it has increased its DPS from $1.76 to $2.08 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. Compared to its peers, Bank of Hawaii generates a yield of 2.51%, which is on the low-side for Banks stocks.
Taking into account the dividend metrics, Bank of Hawaii ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that 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 fundamental aspects you should look at:
- 1. Future Outlook: What are well-informed industry analysts predicting for BOH’s future growth? Take a look at our free research report of analyst consensus for BOH’s outlook.
- 2. Valuation: What is BOH 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 BOH is currently mispriced by the market.
- 3. 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.