Important news for shareholders and potential investors in Big 5 Sporting Goods Corporation (NASDAQ:BGFV): The dividend payment of $0.15 per share will be distributed into shareholder on 15 June 2018, and the stock will begin trading ex-dividend at an earlier date, 31 May 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Big 5 Sporting Goods can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for Big 5 Sporting Goods
5 checks you should do on 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-paying companies?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share amount increased over the past?
- Is it able to pay the current rate of dividends from its earnings?
- Will it be able to continue to payout at the current rate in the future?
How does Big 5 Sporting Goods fare?The current payout ratio for BGFV is negative, which means that it is loss-making, and paying its dividend from its retained earnings. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Relative to peers, Big 5 Sporting Goods generates a yield of 7.14%, which is high for Specialty Retail stocks.
If Big 5 Sporting Goods is in your portfolio for cash-generating reasons, there may be better alternatives out there. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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. Below, I’ve compiled three important factors you should further research:
- Historical Performance: What has BGFV’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Big 5 Sporting Goods’s board and the CEO’s back ground.
- Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.