Should Jensen-Group NV (EBR:JEN) Be Part Of Your Portfolio?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Historically, Jensen-Group NV (EBR:JEN) has been paying a dividend to shareholders. Today it yields 2.9%. Does Jensen-Group tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.
Check out our latest analysis for Jensen-Group
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 paid dividend every year without dramatically reducing payout in the past?
Has the amount of dividend per share grown over the past?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
Does Jensen-Group pass our checks?
Jensen-Group has a trailing twelve-month payout ratio of 36.4%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. JEN has increased its DPS from €0.25 to €1 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes JEN a true dividend rockstar.
Compared to its peers, Jensen-Group generates a yield of 2.9%, which is high for Machinery stocks but still below the market’s top dividend payers.
Next Steps:
Considering the dividend attributes we analyzed above, Jensen-Group 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. I’ve put together three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for JEN’s future growth? Take a look at our free research report of analyst consensus for JEN’s outlook.
Historical Performance: What has JEN’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.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
