Shares of All for One Steeb AG (ETR:A1OS) will begin trading ex-dividend in 4 days. To qualify for the dividend check of €1.20 per share, investors must have owned the shares prior to 14 March 2019, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at All for One Steeb’s most recent financial data to examine its dividend characteristics in more detail.
View our latest analysis for All for One Steeb
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Does it pay an annual yield higher than 75% of dividend payers?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has dividend per share amount increased over the past?
- Is is able to pay the current rate of dividends from its earnings?
- Will it be able to continue to payout at the current rate in the future?
How does All for One Steeb fare?
All for One Steeb has a trailing twelve-month payout ratio of 45%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect A1OS’s payout to remain around the same level at 41% of its earnings. Assuming a constant share price, this equates to a dividend yield of 2.8%. Furthermore, EPS is forecasted to fall to €2.46 in the upcoming year.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view All for One Steeb as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Compared to its peers, All for One Steeb has a yield of 2.3%, which is high for IT stocks but still below the market’s top dividend payers.
Next Steps:
If All for One Steeb is in your portfolio for cash-generating reasons, there may be better alternatives out there. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. 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 fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for A1OS’s future growth? Take a look at our free research report of analyst consensus for A1OS’s outlook.
- Valuation: What is A1OS 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 A1OS is currently mispriced by the market.
- Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.