Yahoo Finance Should You Buy Marine Products Corporation (NYSE:MPX) For Its Upcoming Dividend In 3 Days?
Marine Products Corporation (NYSE:MPX) is about to trade ex-dividend in the next 3 days. This means that investors who purchase shares on or after the 7th of February will not receive the dividend, which will be paid on the 10th of March.
Marine Products's next dividend payment will be US$0.12 per share, and in the last 12 months, the company paid a total of US$0.58 per share. Calculating the last year's worth of payments shows that Marine Products has a trailing yield of 4.1% on the current share price of $14. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.
Check out our latest analysis for Marine Products
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Marine Products is paying out an acceptable 58% of its profit, a common payout level among most companies.
Click here to see how much of its profit Marine Products paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Marine Products's earnings have been skyrocketing, up 28% per annum for the past five years. The current payout ratio suggests a good balance between rewarding shareholders with dividends, and reinvesting in growth. Earnings per share have been growing quickly and in combination with some reinvestment and a middling payout ratio, the stock may have decent dividend prospects going forwards.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past eight years, Marine Products has increased its dividend at approximately 28% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.
To Sum It Up
Has Marine Products got what it takes to maintain its dividend payments? Earnings per share are growing nicely, and Marine Products is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Marine Products ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.
Want to learn more about Marine Products? Here's a visualisation of its historical rate of revenue and earnings growth.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
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.
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. Thank you for reading.
