Investors who want to cash in on WVS Financial Corp’s (NASDAQ:WVFC) upcoming dividend of $0.08 per share have only 3 days left to buy the shares before its ex-dividend date, 07 February 2018, in time for dividends payable on the 15 February 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding WVS Financial can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for WVS Financial
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has dividend per share amount increased over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Will the company be able to keep paying dividend based on the future earnings growth?
How well does WVS Financial fit our criteria?
WVS Financial has a trailing twelve-month payout ratio of 25.45%, 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. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Dividend payments from WVS Financial have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. Relative to peers, WVS Financial has a yield of 2.12%, which is on the low-side for Mortgage stocks.
After digging a little deeper into WVS Financial’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three fundamental factors you should look at:
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