Yahoo Finance 3 Days Left Before TFI International Inc (TSE:TFII) Will Be Trading Ex-Dividend,
Important news for shareholders and potential investors in TFI International Inc (TSE:TFII): The dividend payment of CA$0.21 per share will be distributed to shareholders on 15 October 2018, and the stock will begin trading ex-dividend at an earlier date, 27 September 2018. Is this future income a persuasive enough catalyst for investors to think about TFI International as an investment today? Below, 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 TFI International
5 checks you should do on a dividend stock
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?
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?
Can it afford to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does TFI International pass our checks?
TFI International has a trailing twelve-month payout ratio of 21.0%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect TFII’s payout to increase to 41.1% of its earnings, which leads to a dividend yield of 2.9%. However, EPS is forecasted to fall to CA$3.01 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
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. In the case of TFII it has increased its DPS from CA$0.40 to CA$0.84 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes TFII a true dividend rockstar.
Compared to its peers, TFI International generates a yield of 1.7%, which is on the low-side for Transportation stocks.
Next Steps:
Keeping in mind the dividend characteristics above, TFI International is definitely worth considering for investors looking to build a dedicated income portfolio. 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. I’ve put together three pertinent aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for TFII’s future growth? Take a look at our free research report of analyst consensus for TFII’s outlook.
Valuation: What is TFII 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 TFII 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.
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.
