If you are interested in cashing in on Impax Asset Management Group plc’s (AIM:IPX) upcoming dividend of £0.02 per share, you only have 7 days left to buy the shares before its ex-dividend date, 08 February 2018, in time for dividends payable on the 16 March 2018. 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 Impax Asset Management Group’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for Impax Asset Management Group
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 its annual yield among the top 25% of dividend-paying companies?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has it increased its dividend per share amount over the past?
- Can it afford 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?
Does Impax Asset Management Group pass our checks?The current trailing twelve-month payout ratio for the stock is 44.77%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 26.61%, leading to a dividend yield of 2.59%. 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 Impax Asset Management Group as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Impax Asset Management Group generates a yield of 1.70%, which is on the low-side for Capital Markets stocks.
After digging a little deeper into Impax Asset Management Group’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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. Below, I’ve compiled three fundamental aspects you should further examine:
- 1. Future Outlook: What are well-informed industry analysts predicting for IPX’s future growth? Take a look at our free research report of analyst consensus for IPX’s outlook.
- 2. Valuation: What is IPX 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 IPX is currently mispriced by the market.
- 3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.