Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Orbis Spólka Akcyjna (WSE:ORB) has returned to shareholders over the past 10 years, an average dividend yield of 2.00% annually. Does Orbis Spólka Akcyjna tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. Check out our latest analysis for Orbis Spólka Akcyjna
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is it paying an annual yield above 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically 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?
Does Orbis Spólka Akcyjna pass our checks?The current trailing twelve-month payout ratio for the stock is 30.39%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 44.43%, leading to a dividend yield of 2.54%. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although ORB’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Relative to peers, Orbis Spólka Akcyjna produces a yield of 1.65%, which is on the low-side for Hospitality stocks.
Taking all the above into account, Orbis Spólka Akcyjna 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, 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. I’ve put together three key aspects you should further research:
- Historical Performance: What has ORB’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Orbis Spólka Akcyjna’s board and the CEO’s back ground.
- Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.