Is Buying ManTech International Corporation (NASDAQ:MANT) For Its Upcoming $0.25 Dividend A Good Choice?

Attention dividend hunters! ManTech International Corporation (NASDAQ:MANT) will be distributing its dividend of $0.25 per share on the 23 March 2018, and will start trading ex-dividend in 3 days time on the 08 March 2018. Should you diversify into ManTech International 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. View our latest analysis for ManTech International

5 checks you should use to assess a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

• Is it paying an annual yield above 75% of dividend payers?
• Has it paid dividend every year without dramatically reducing payout in the past?
• Has dividend per share amount increased over the past?
• Is is able to pay the current rate of dividends from its earnings?
• Will the company be able to keep paying dividend based on the future earnings growth?

How well does ManTech International fit our criteria?

The current trailing twelve-month payout ratio for the stock is 28.61%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 41.50%, leading to a dividend yield of around 1.75%. However, EPS is forecasted to fall to $2.01 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. Unfortunately, it is really too early to view ManTech International as a dividend investment. It has only been consistently paying dividends for 7 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, ManTech International produces a yield of 1.75%, which is high for IT stocks but still below the low risk savings rate.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in ManTech International for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three pertinent factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for MANT’s future growth? Take a look at our free research report of analyst consensus for MANT’s outlook.
2. Valuation: What is MANT 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 MANT is currently mispriced by the market.
3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.