How Does International Personal Finance Plc (LON:IPF) Fare As A Dividend Stock?

There is a lot to be liked about International Personal Finance Plc (LSE:IPF) as an income stock, over the past 10 years it has returned an average of 3.00% per year. The company currently pays out a dividend yield of 6.46% to shareholders, making it a relatively attractive dividend stock. Does International Personal Finance tick all the boxes of a great dividend stock? Below, I'll take you through my analysis. See our latest analysis for International Personal Finance

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 it consistently paid a stable dividend without missing a payment or drastically cutting payout?
• Has dividend per share risen in the past couple of years?
• Is it able to pay the current rate of dividends from its earnings?
• Will it have the ability to keep paying its dividends going forward?

How does International Personal Finance fare?

The current trailing twelve-month payout ratio for the stock is 37.75%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect IPF's payout to remain around the same level at 38.81% of its earnings, which leads to a dividend yield of around 6.56%. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. In the case of IPF it has increased its DPS from £0.05 to £0.12 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. In terms of its peers, International Personal Finance generates a yield of 6.46%, which is high for Consumer Finance stocks.

Next Steps:

With these dividend metrics in mind, I definitely rank International Personal Finance as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. I've put together three key aspects you should further examine:

• 1. Valuation: What is IPF 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 IPF is currently mispriced by the market.
• 2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on International Personal Finance’s board and the CEO’s back ground.
• 3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.