Why PageGroup plc (LON:PAGE) Should Be In Your Portfolio
Over the past 10 years PageGroup plc (LSE:PAGE) has returned an average of 3.00% per year from dividend payouts. The stock currently pays out a dividend yield of 3.48%, and has a market cap of UK£1.63B. Should it have a place in your portfolio? Let’s take a look at PageGroup in more detail. Check out our latest analysis for PageGroup
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment or significantly cutting payout?
Has dividend per share risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
How does PageGroup fare?
PageGroup has a trailing twelve-month payout ratio of 47.68%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect PAGE’s payout to remain around the same level at 50.26% of its earnings, which leads to a dividend yield of 3.70%. Moreover, EPS should increase to £0.29. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. PAGE has increased its DPS from £0.07 to £0.18 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 PAGE a true dividend rockstar. Compared to its peers, PageGroup produces a yield of 3.48%, which is high for Professional Services stocks but still below the market’s top dividend payers.
Next Steps:
Taking into account the dividend metrics, PageGroup ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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 research:
1. Future Outlook: What are well-informed industry analysts predicting for PAGE’s future growth? Take a look at our free research report of analyst consensus for PAGE’s outlook.
2. Valuation: What is PAGE 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 PAGE is currently mispriced by the market.
3. 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.
