1 Days Left To Cash In On Vifor Pharma AG (VTX:VIFN) Dividend
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Have you been keeping an eye on Vifor Pharma AG's (VTX:VIFN) upcoming dividend of CHF2.00 per share payable on the 14 May 2019? Then you only have 1 days left before the stock starts trading ex-dividend on the 10 May 2019. Is this future income a persuasive enough catalyst for investors to think about Vifor Pharma 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.
View our latest analysis for Vifor Pharma
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 the amount of dividend per share grown over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
Does Vifor Pharma pass our checks?
The current trailing twelve-month payout ratio for the stock is 85%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 31% which, assuming the share price stays the same, leads to a dividend yield of 1.7%. However, EPS should increase to CHF2.77, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. The reality is that it is too early to consider Vifor Pharma as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Compared to its peers, Vifor Pharma generates a yield of 1.5%, which is on the low-side for Pharmaceuticals stocks.
Next Steps:
After digging a little deeper into Vifor Pharma's yield, it's easy to see why you should be cautious investing in the company just for the dividend. 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I've put together three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for VIFN’s future growth? Take a look at our free research report of analyst consensus for VIFN’s outlook.
Valuation: What is VIFN 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 VIFN is currently mispriced by the market.
Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
