Yahoo Finance AUB Group Limited (ASX:AUB): Ex-Dividend Is In 3 Days
Important news for shareholders and potential investors in AUB Group Limited (ASX:AUB): The dividend payment of AU$0.14 per share will be distributed to shareholders on 05 April 2019, and the stock will begin trading ex-dividend at an earlier date, 06 March 2019. Should you diversify into AUB Group 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 AUB Group
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it the top 25% annual dividend yield payer?
Has it paid dividend every year without dramatically reducing payout in the past?
Has it increased its dividend per share amount 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 AUB Group pass our checks?
AUB Group has a trailing twelve-month payout ratio of 69%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 66% which, assuming the share price stays the same, leads to a dividend yield of around 3.9%. Moreover, EPS should increase to A$0.68.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
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. In the case of AUB it has increased its DPS from A$0.18 to A$0.46 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes AUB a true dividend rockstar.
Relative to peers, AUB Group generates a yield of 3.7%, which is on the low-side for Insurance stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank AUB Group as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. Below, I’ve compiled three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for AUB’s future growth? Take a look at our free research report of analyst consensus for AUB’s outlook.
Valuation: What is AUB 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 AUB is currently mispriced by the market.
Other 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.
