If you are interested in cashing in on Acciona SA’s (BME:ANA) upcoming dividend of €2.43 per share, you only have 2 days left to buy the shares before its ex-dividend date, 28 June 2018, in time for dividends payable on the 02 July 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Acciona’s latest financial data to analyse its dividend attributes. Check out our latest analysis for Acciona
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is its annual yield among the top 25% of dividend-paying companies?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share amount increased over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Will it have the ability to keep paying its dividends going forward?
How well does Acciona fit our criteria?
Acciona has a trailing twelve-month payout ratio of 77.36%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect ANA’s payout to remain around the same level at 75.37% of its earnings, which leads to a dividend yield of around 4.42%. Moreover, EPS should increase to €4.26.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Dividend payments from Acciona have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.Relative to peers, Acciona has a yield of 4.23%, which is high for Electric Utilities stocks but still below the market’s top dividend payers.
If Acciona 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, 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 essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ANA’s future growth? Take a look at our free research report of analyst consensus for ANA’s outlook.
- Valuation: What is ANA 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 ANA 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.