Should Univest Corporation of Pennsylvania (NASDAQ:UVSP) Be Part Of Your Portfolio?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. In the past 10 years Univest Corporation of Pennsylvania (NASDAQ:UVSP) has returned an average of 4.00% per year to investors in the form of dividend payouts. Should it have a place in your portfolio? Let’s take a look at Univest of Pennsylvania in more detail. See our latest analysis for Univest of Pennsylvania
5 questions to ask before buying a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is it the top 25% annual dividend yield payer?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has the amount of dividend per share grown over the past?
Does earnings amply cover its dividend payments?
Will the company be able to keep paying dividend based on the future earnings growth?
How does Univest of Pennsylvania fare?
Univest of Pennsylvania has a trailing twelve-month payout ratio of 47.80%, 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. The reality facing UVSP investors is that whilst it has continued to pay shareholders dividend, there has not been any increase in the level of dividends paid in the past decade. Though this may not be a serious red flag, strong dividend stocks should always strive to increase its payout over time.
In terms of its peers, Univest of Pennsylvania produces a yield of 2.79%, which is on the low-side for Banks stocks.
Next Steps:
Whilst there are few things you may like about Univest of Pennsylvania from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three essential factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for UVSP’s future growth? Take a look at our free research report of analyst consensus for UVSP’s outlook.
Historical Performance: What has UVSP’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.
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.
