Investors who want to cash in on MGE Energy Inc’s (NASDAQ:MGEE) upcoming dividend of $0.32 per share have only 3 days left to buy the shares before its ex-dividend date, 31 May 2018, in time for dividends payable on the 15 June 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding MGE Energy can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for MGE Energy
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key 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 dividend per share risen in the past couple of years?
- Is its earnings sufficient to payout dividend at the current rate?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does MGE Energy fare?
The current trailing twelve-month payout ratio for the stock is 44.95%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. MGEE has increased its DPS from $0.95 to $1.29 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. This is an impressive feat, which makes MGEE a true dividend rockstar. Relative to peers, MGE Energy has a yield of 2.19%, which is on the low-side for Electric Utilities stocks.
With this in mind, I definitely rank MGE Energy as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 fundamental factors you should further examine:
- Historical Performance: What has MGEE’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on MGE Energy’s board and the CEO’s back ground.
- 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.