Have you been keeping an eye on A Schulman Inc.’s (NASDAQ:SHLM) upcoming dividend of $0.21 per share payable on the 01 May 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 12 April 2018. Should you diversify into A. Schulman and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for A. Schulman
Here’s how I find good dividend stocks
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 it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has dividend per share amount increased over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Will it be able to continue to payout at the current rate in the future?
How does A. Schulman fare?
The current trailing twelve-month payout ratio for the stock is 64.13%, which means that the dividend is covered by earnings. However, going forward, analysts expect SHLM’s payout to fall to 22.96% of its earnings, which leads to a dividend yield of 1.92%. However, EPS should increase to $2.3, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of SHLM it has increased its DPS from $0.6 to $0.82 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes SHLM a true dividend rockstar. Compared to its peers, A. Schulman has a yield of 1.91%, which is on the low-side for Chemicals stocks.
Considering the dividend attributes we analyzed above, A. Schulman is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. I’ve put together three relevant aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SHLM’s future growth? Take a look at our free research report of analyst consensus for SHLM’s outlook.
- Valuation: What is SHLM 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 SHLM 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.