Important news for shareholders and potential investors in First Defiance Financial Corp (NASDAQ:FDEF): The dividend payment of $0.3 per share will be distributed into shareholder on 25 May 2018, and the stock will begin trading ex-dividend at an earlier date, 17 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine First Defiance Financial’s latest financial data to analyse its dividend characteristics. View our latest analysis for First Defiance Financial
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
- Is it paying an annual yield above 75% of dividend payers?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has dividend per share risen in the past couple of years?
- Does earnings amply cover its dividend payments?
- Will the company be able to keep paying dividend based on the future earnings growth?
How does First Defiance Financial fare?
First Defiance Financial has a trailing twelve-month payout ratio of 27.42%, 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 there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. 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. In terms of its peers, First Defiance Financial generates a yield of 1.97%, which is on the low-side for Mortgage stocks.
Whilst there are few things you may like about First Defiance Financial from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. 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 important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for FDEF’s future growth? Take a look at our free research report of analyst consensus for FDEF’s outlook.
- Valuation: What is FDEF 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 FDEF is currently mispriced by the market.
- Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
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