Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. Over the past 10 years, MCAN Mortgage Corporation (TSE:MKP) has returned an average of 9.00% per year to shareholders in terms of dividend yield. Should it have a place in your portfolio? Let’s take a look at MCAN Mortgage in more detail. See our latest analysis for MCAN Mortgage
5 questions I ask before picking a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it the top 25% annual dividend yield payer?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has dividend per share risen in the past couple of years?
- Does earnings amply cover its dividend payments?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does MCAN Mortgage fare?
The current trailing twelve-month payout ratio for the stock is 79.98%, 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time.Compared to its peers, MCAN Mortgage has a yield of 8.23%, which is high for Mortgage stocks.
Keeping in mind the dividend characteristics above, MCAN Mortgage is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MKP’s future growth? Take a look at our free research report of analyst consensus for MKP’s outlook.
- Historical Performance: What has MKP’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.