Read This Before Buying International Personal Finance Plc (LON:IPF) For Its Upcoming £0.08 Dividend

Attention dividend hunters! International Personal Finance Plc (LSE:IPF) will be distributing its dividend of £0.08 per share on the 11 May 2018, and will start trading ex-dividend in 3 days time on the 12 April 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 International Personal Finance's most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for International Personal Finance

What Is A Dividend Rock Star?

It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically:

It is paying an annual yield above 75% of dividend payers

It consistently pays out dividend without missing a payment or significantly cutting payout

Its dividend per share amount has increased over the past

It is able to pay the current rate of dividends from its earnings

It has the ability to keep paying its dividends going forward

High Yield And Dependable

The company's dividend yield stands at 5.05%, which is high for Consumer Finance stocks. But the real reason International Personal Finance stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you're investor who wants a robust cash inflow from your portfolio over a long period of time.

If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. 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. The current trailing twelve-month payout ratio for the stock is 61.28%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 33.43%, leading to a dividend yield of 5.12%.

Next Steps:

International Personal Finance ticks all the boxes for what I look for in a dividend stock. If you are looking to build an income focused portfolio, this could be one to include. However, given 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 relevant factors you should further research:

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 strong dividend payers with better 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.