6 Days Left To CIMIC Group Limited (ASX:CIM)’s Ex-Dividend Date, Should Investors Buy?

If you are interested in cashing in on CIMIC Group Limited’s (ASX:CIM) upcoming dividend of A$0.75 per share, you only have 6 days left to buy the shares before its ex-dividend date, 13 June 2018, in time for dividends payable on the 04 July 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at CIMIC Group’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for CIMIC Group

5 questions I ask before picking 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?

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

• Has dividend per share amount increased over the past?

• Does earnings amply cover its dividend payments?

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

ASX:CIM Historical Dividend Yield Jun 6th 18

Does CIMIC Group pass our checks?

CIMIC Group has a trailing twelve-month payout ratio of 61.36%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 64.35%, leading to a dividend yield of 3.81%. In addition to this, EPS should increase to A$2.41. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, CIMIC Group has a yield of 3.29%, which is on the low-side for Construction stocks.

Next Steps:

Considering the dividend attributes we analyzed above, CIMIC 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three fundamental aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for CIM’s future growth? Take a look at our free research report of analyst consensus for CIM’s outlook.

2. Valuation: What is CIM 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 CIM is currently mispriced by the market.

3. 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 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.