Read This Before Buying Morgan Sindall Group plc (LON:MGNS) For Its Upcoming £0.29 Dividend
Attention dividend hunters! Morgan Sindall Group plc (LSE:MGNS) will be distributing its dividend of £0.29 per share on the 21 May 2018, and will start trading ex-dividend in 5 days time on the 26 April 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Morgan Sindall Group’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Morgan Sindall Group
5 checks you should use to assess a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is it paying an annual yield above 75% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How well does Morgan Sindall Group fit our criteria?
The company currently pays out 37.87% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect MGNS’s payout to remain around the same level at 37.59% of its earnings, which leads to a dividend yield of around 3.86%. In addition to this, EPS should increase to £1.25. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, Morgan Sindall Group generates a yield of 3.32%, which is on the low-side for Construction stocks.
Next Steps:
Keeping in mind the dividend characteristics above, Morgan Sindall Group is definitely worth considering for investors looking to build a dedicated income 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. There are three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MGNS’s future growth? Take a look at our free research report of analyst consensus for MGNS’s outlook.
Valuation: What is MGNS 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 MGNS 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.
