Have you been keeping an eye on Impax Asset Management Group plc’s (LON:IPX) upcoming dividend of £0.037 per share payable on the 20 July 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 14 June 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Impax Asset Management Group can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View out our latest analysis for Impax Asset Management Group
5 questions to ask before buying 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?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has the amount of dividend per share grown 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 does Impax Asset Management Group fare?The company currently pays out 41.96% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 29.50%, leading to a dividend yield of 2.29%. However, EPS should increase to £0.12, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. 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, Impax Asset Management Group has a yield of 1.53%, which is on the low-side for Capital Markets stocks.
Taking all the above into account, Impax Asset Management Group is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three pertinent aspects you should further examine:
- 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.
- 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.
- Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.