There is a lot to be liked about Access National Corporation (NASDAQ:ANCX) as an income stock, over the past 10 years it has returned an average of 2.00% per year. The company is currently worth US$599.72M, and now yields roughly 2.07%. Let’s dig deeper into whether Access National should have a place in your portfolio. Check out our latest analysis for Access National
5 questions I ask before picking a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Is its 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 it increased its dividend per share amount over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Will it have the ability to keep paying its dividends going forward?
Does Access National pass our checks?
Access National has a trailing twelve-month payout ratio of 55.86%, which means that the dividend is covered by earnings. However, going forward, analysts expect ANCX’s payout to fall to 32.96% of its earnings, which leads to a dividend yield of around 2.21%. However, EPS should increase to $1.8, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of ANCX it has increased its DPS from $0.04 to $0.6 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. In terms of its peers, Access National produces a yield of 2.07%, which is on the low-side for Banks stocks.
Keeping in mind the dividend characteristics above, Access National is definitely worth considering for investors looking to build a dedicated income 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 key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ANCX’s future growth? Take a look at our free research report of analyst consensus for ANCX’s outlook.
- Valuation: What is ANCX 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 ANCX is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.