On the 13 July 2018, KBR Inc (NYSE:KBR) will be paying shareholders an upcoming dividend amount of $0.080 per share. However, investors must have bought the company’s stock before 14 June 2018 in order to qualify for the payment. That means you have only 5 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into KBR’s latest financial data to analyse its dividend attributes. View out our latest analysis for KBR
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Does it pay an annual yield higher than 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?
- Does earnings amply cover its dividend payments?
- Will it be able to continue to payout at the current rate in the future?
How does KBR fare?The company currently pays out 8.45% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 19.68%, leading to a dividend yield of around 1.65%. However, EPS is forecasted to fall to $1.85 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. 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. KBR has increased its DPS from $0.20 to $0.32 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, KBR generates a yield of 1.72%, which is on the low-side for Construction stocks.
Considering the dividend attributes we analyzed above, KBR is definitely worth keeping an eye on for someone 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. Below, I’ve compiled three pertinent aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for KBR’s future growth? Take a look at our free research report of analyst consensus for KBR’s outlook.
- Valuation: What is KBR 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 KBR 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.