Read This Before Buying Superior Industries International Inc (NYSE:SUP) For Its Upcoming $0.09 Dividend

Attention dividend hunters! Superior Industries International Inc (NYSE:SUP) will be distributing its dividend of $0.09 per share on the 19 April 2018, and will start trading ex-dividend in 3 days time on the 04 April 2018. Is this future income a persuasive enough catalyst for investors to think about Superior Industries International as an investment today? Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. View our latest analysis for Superior Industries International

5 checks you should use to assess a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Is their annual yield among the top 25% of dividend payers?
• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
• Has dividend per share amount increased over the past?
• Can it afford to pay the current rate of dividends from its earnings?
• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

Does Superior Industries International pass our checks?

Superior Industries International has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. Dividend payments from Superior Industries International have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. In terms of its peers, Superior Industries International produces a yield of 2.71%, which is high for Auto Components stocks but still below the market's top dividend payers.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Superior Industries International for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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. Below, I've compiled three fundamental factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for SUP’s future growth? Take a look at our free research report of analyst consensus for SUP’s outlook.
2. Valuation: What is SUP 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 SUP is currently mispriced by the market.
3. 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.