Important news for shareholders and potential investors in Federated Investors Inc (NYSE:FII): The dividend payment of $0.25 per share will be distributed into shareholder on 15 November 2017, and the stock will begin trading ex-dividend at an earlier date, 07 November 2017. Is this future income a persuasive enough catalyst for investors to think about FII as an investment today? Below, Im going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for FII
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
The company currently pays out 47.12% of its earnings as a dividend, which means that the dividend is covered by earnings. Looking forward, analysts expect FII to pay out 47.43% of its earnings leading to a dividend yield of 3.20%. In addition to this, EPS should increase to $2.17. This means the company should be able to continue to payout dividends. 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. In the case of FII it has increased its DPS from $0.84 to $1 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. In terms of its peers, FII has a yield of 3.15%, which is high for capital markets stocks but still below the markets top dividend payers.
Are you a shareholder? With Federated Investors producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. But, depending on your current holdings, it may be valuable exploring other income stocks to increase diversification, or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking into account the dividend metrics, Federated Investors ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. No matter how much of a cash cow Federated Investors is, it is not worth an infinite price. Is Federated Investors overvalued or is it actually a bargain? Dig deeper in our latest free analysis to find out!
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.