Only 9 Days Left To Diebold Nixdorf Incorporated (NYSE:DBD)’s Ex-Dividend Date, Should You Buy?
Investors who want to cash in on Diebold Nixdorf Incorporated’s (NYSE:DBD) upcoming dividend of $0.1 per share have only 9 days left to buy the shares before its ex-dividend date, 23 February 2018, in time for dividends payable on the 16 March 2018. Should you diversify into Diebold Nixdorf 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. See our latest analysis for Diebold Nixdorf
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 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 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 Diebold Nixdorf fare?
Diebold Nixdorf has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Dividend payments from Diebold Nixdorf have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. Compared to its peers, Diebold Nixdorf generates a yield of 2.75%, which is high for Tech stocks but still below the market’s top dividend payers.
Next Steps:
After digging a little deeper into Diebold Nixdorf’s yield, it’s easy to see why you should be cautious investing in the company just 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, 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 fundamental aspects you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for DBD’s future growth? Take a look at our free research report of analyst consensus for DBD’s outlook.
2. Valuation: What is DBD 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 DBD 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.
To help readers see pass 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.
