Only 5 Days Left To Stobart Group Limited (LON:STOB)’s Ex-Dividend Date, Should You Buy?

Investors who want to cash in on Stobart Group Limited's (LON:STOB) upcoming dividend of £0.045 per share have only 5 days left to buy the shares before its ex-dividend date, 14 June 2018, in time for dividends payable on the 06 July 2018. Should you diversify into Stobart Group and boost your portfolio income stream? Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. View out our latest analysis for Stobart Group

5 questions to ask before buying a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Does it pay an annual yield higher than 75% of dividend payers?
• 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 be able to continue to payout at the current rate in the future?

How does Stobart Group fare?

Stobart Group has a trailing twelve-month payout ratio of 62.81%, meaning the dividend is sufficiently covered by earnings. Furthermore, analysts are forecasting the payout ratio to exceed earnings going forward, leading to a future of uncertainty around the stability of STOB's dividend income. If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, Stobart Group has a yield of 7.73%, which is high for Oil and Gas stocks.

Next Steps:

With this in mind, I definitely rank Stobart Group as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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. There are three important factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for STOB’s future growth? Take a look at our free research report of analyst consensus for STOB’s outlook.
2. Valuation: What is STOB 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 STOB is currently mispriced by the market.
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.