Teva Pharmaceutical Industries Limited (TEVA): Ex-Dividend Is Coming In 3 Days, Should You Buy?

Renee Allred
Updated

Important news for shareholders and potential investors in Teva Pharmaceutical Industries Limited (NYSE:TEVA): The dividend payment of $0.07 per share will be distributed into shareholder on 12 December 2017, and the stock will begin trading ex-dividend at an earlier date, 27 November 2017. Should you diversify into TEVA 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 Teva Pharmaceutical Industries

5 questions to ask before buying a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

  • Is its annual yield among the top 25% of dividend-paying companies?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has it increased its dividend per share amount over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will it have the ability to keep paying its dividends going forward?

NYSE:TEVA Historical Dividend Yield Nov 23rd 17
NYSE:TEVA Historical Dividend Yield Nov 23rd 17

How does Teva Pharmaceutical Industries fare?

Teva Pharmaceutical Industries 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 Teva Pharmaceutical Industries 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. In terms of its peers, TEVA generates a yield of 2.52%, which is on the low-side for pharmaceuticals stocks.

What this means for you:

Are you a shareholder? Investors may not have the best feeling about their investment in TEVA right now, in terms of its dividend attributes. It may be worth exploring other income stocks as alternatives to TEVA or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? After digging a little deeper into TEVA’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, TEVA could still be offering some interesting investment opportunities. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Take a look at our latest free fundmental analysis to explore other aspects of TEVA.


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.