Important news for shareholders and potential investors in Access National Corporation (NASDAQ:ANCX): The dividend payment of $0.15 per share will be distributed into shareholder on 25 May 2018, and the stock will begin trading ex-dividend at an earlier date, 09 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Access National’s latest financial data to analyse its dividend attributes. View our latest analysis for Access National
How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it paying an annual yield above 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 risen in the past couple of years?
- Is it able to pay the current rate of dividends from its earnings?
- Will it have the ability to keep paying its dividends going forward?
How well does Access National fit our criteria?
The company currently pays out 52.88% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. However, going forward, analysts expect ANCX’s payout to fall to 32.65% of its earnings, which leads to a dividend yield of around 2.32%. However, EPS should increase to $1.81, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. ANCX 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. This is an impressive feat, which makes ANCX a true dividend rockstar. Compared to its peers, Access National generates a yield of 2.19%, which is on the low-side for Banks stocks.
With these dividend metrics in mind, I definitely rank Access National as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. Below, I’ve compiled three key factors you should look at:
- 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.