Read This Before Buying Taitron Components Incorporated (NASDAQ:TAIT) For Its Upcoming $0.03 Dividend
If you are interested in cashing in on Taitron Components Incorporated’s (NASDAQ:TAIT) upcoming dividend of $0.03 per share, you only have 3 days left to buy the shares before its ex-dividend date, 14 May 2018, in time for dividends payable on the 31 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Taitron Components’s latest financial data to analyse its dividend characteristics. View our latest analysis for Taitron Components
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
Is it the top 25% annual dividend yield payer?
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 Taitron Components fit our criteria?
Taitron Components has a trailing twelve-month payout ratio of 79.19%, meaning the dividend is sufficiently 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. 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. In terms of its peers, Taitron Components produces a yield of 6.34%, which is high for Electronic stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Taitron Components is definitely worth keeping an eye on for someone 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 pertinent aspects you should further research:
Historical Performance: What has TAIT’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 Taitron Components’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.
