On the 18 June 2018, Grammer AG (DB:GMM) will be paying shareholders an upcoming dividend amount of €1.25 per share. However, investors must have bought the company’s stock before 14 June 2018 in order to qualify for the payment. That means you have only 5 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Grammer’s latest financial data to analyse its dividend attributes. See our latest analysis for Grammer
5 questions I ask before picking 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?
- Has it consistently paid a stable dividend without missing a payment or drastically 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 the company be able to keep paying dividend based on the future earnings growth?
How well does Grammer fit our criteria?The current trailing twelve-month payout ratio for the stock is 50.34%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 32.00%, leading to a dividend yield of 2.29%. However, EPS should increase to €4.71, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. 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. Relative to peers, Grammer has a yield of 1.93%, which is on the low-side for Auto Components stocks.
Keeping in mind the dividend characteristics above, Grammer is definitely worth considering for investors looking to build a dedicated income portfolio. 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. I’ve put together three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for GMM’s future growth? Take a look at our free research report of analyst consensus for GMM’s outlook.
- Valuation: What is GMM 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 GMM is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.