Attention dividend hunters! The York Water Company (NASDAQ:YORW) will be distributing its dividend of US$0.17 per share on the 16 July 2018, and will start trading ex-dividend in 2 days time on the 28 June 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding York Water can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View out our latest analysis for York Water
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is their annual yield among the top 25% of dividend payers?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has it increased its dividend per share amount over the past?
- 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 York Water fare?
The company currently pays out 64.70% of its earnings as a dividend, according to its trailing twelve-month data, 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. In the case of YORW it has increased its DPS from $0.48 to $0.67 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
Relative to peers, York Water produces a yield of 2.04%, which is on the low-side for Water Utilities stocks.
Considering the dividend attributes we analyzed above, York Water is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. Below, I’ve compiled three relevant aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for YORW’s future growth? Take a look at our free research report of analyst consensus for YORW’s outlook.
- Historical Performance: What has YORW’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.
- 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.