Interested In Fiducian Group Limited (ASX:FID)’s Upcoming AU$0.11 Dividend? You Have 2 Days Left

If you are interested in cashing in on Fiducian Group Limited’s (ASX:FID) upcoming dividend of AU$0.11 per share, you only have 2 days left to buy the shares before its ex-dividend date, 28 August 2018, in time for dividends payable on the 12 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Fiducian Group’s latest financial data to analyse its dividend attributes.

View our latest analysis for Fiducian Group

5 checks you should use to assess a dividend stock

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

• Is it the top 25% annual dividend yield payer?

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

• Has dividend per share amount increased over the past?

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

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

ASX:FID Historical Dividend Yield August 25th 18

How does Fiducian Group fare?

Fiducian Group has a trailing twelve-month payout ratio of 68.0%, meaning the dividend is sufficiently 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 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. Although FID’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.

Compared to its peers, Fiducian Group has a yield of 4.4%, which is high for Capital Markets stocks but still below the market’s top dividend payers.

Next Steps:

If Fiducian Group is in your portfolio for cash-generating reasons, there may be better alternatives out there. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. 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. There are three essential factors you should further examine:

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

2. Valuation: What is FID 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 FID 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 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.