If you are interested in cashing in on AXIS Capital Holdings Limited’s (NYSE:AXS) upcoming dividend of US$0.39 per share, you only have 1 days left to buy the shares before its ex-dividend date, 28 June 2018, in time for dividends payable on the 16 July 2018. Is this future income a persuasive enough catalyst for investors to think about AXIS Capital Holdings 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. See our latest analysis for AXIS Capital Holdings
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has dividend per share risen in the past couple of years?
- Does earnings amply cover its dividend payments?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does AXIS Capital Holdings pass our checks?
The current payout ratio for AXS is negative, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings.
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 AXS it has increased its DPS from $0.74 to $1.56 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.Compared to its peers, AXIS Capital Holdings produces a yield of 2.79%, which is on the low-side for Insurance stocks.
Considering the dividend attributes we analyzed above, AXIS Capital Holdings 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. There are three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for AXS’s future growth? Take a look at our free research report of analyst consensus for AXS’s outlook.
- Valuation: What is AXS 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 AXS 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.