Yahoo Finance Noni B Limited (ASX:NBL): 4 Days To Buy Before The Ex-Dividend Date
On the 22 March 2019, Noni B Limited (ASX:NBL) will be paying shareholders an upcoming dividend amount of AU$0.09 per share. However, investors must have bought the company’s stock before 11 March 2019 in order to qualify for the payment. That means you have only 4 days left! What does this mean for current shareholders and potential investors? Below, I will explain how holding Noni B can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
Check out our latest analysis for Noni B
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is its annual yield among the top 25% of dividend-paying companies?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
How well does Noni B fit our criteria?
The current trailing twelve-month payout ratio for the stock is 78%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 79% which, assuming the share price stays the same, leads to a dividend yield of 8.3%. Moreover, EPS should increase to A$0.26.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although NBL’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time.
In terms of its peers, Noni B produces a yield of 4.1%, which is on the low-side for Specialty Retail stocks.
Next Steps:
With this in mind, I definitely rank Noni B as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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. I’ve put together three relevant aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for NBL’s future growth? Take a look at our free research report of analyst consensus for NBL’s outlook.
Valuation: What is NBL 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 NBL 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.
