Read This Before Buying Pope Resources A Delaware Limited Partnership (NASDAQ:POPE) For Its Upcoming $0.7 Dividend
If you are interested in cashing in on Pope Resources A Delaware Limited Partnership’s (NASDAQ:POPE) upcoming dividend of $0.7 per share, you only have 7 days left to buy the shares before its ex-dividend date, 28 February 2018, in time for dividends payable on the 15 March 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 Pope Resources A Delaware Limited Partnership’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Pope Resources A Delaware Limited Partnership
5 questions to ask before buying 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 the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does Pope Resources A Delaware Limited Partnership fit our criteria?
The company currently pays out 125.88% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is not sufficiently covered by its 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. Although POPE’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Pope Resources A Delaware Limited Partnership has a yield of 4.13%, which is high for Forestry stocks.
Next Steps:
If Pope Resources A Delaware Limited Partnership is in your portfolio for cash-generating reasons, there may be better alternatives out there. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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 relevant factors you should further examine:
1. Valuation: What is POPE 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 POPE is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pope Resources A Delaware Limited Partnership’s board and the CEO’s back ground.
3. 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.
