Yahoo Finance Genworth MI Canada Inc (TSE:MIC): Ex-Dividend Is In 3 Days
Important news for shareholders and potential investors in Genworth MI Canada Inc (TSE:MIC): The dividend payment of CA$0.51 per share will be distributed to shareholders on 29 November 2018, and the stock will begin trading ex-dividend at an earlier date, 08 November 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Genworth MI Canada’s latest financial data to analyse its dividend attributes.
Check out our latest analysis for Genworth MI Canada
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key 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 the amount of dividend per share grown over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How does Genworth MI Canada fare?
The current trailing twelve-month payout ratio for the stock is 34%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 40%, leading to a dividend yield of 4.7%. However, EPS is forecasted to fall to CA$5.25 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality is that it is too early to consider Genworth MI Canada as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Genworth MI Canada generates a yield of 4.7%, which is on the low-side for Mortgage stocks.
Next Steps:
If Genworth MI Canada is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MIC’s future growth? Take a look at our free research report of analyst consensus for MIC’s outlook.
Valuation: What is MIC 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 MIC 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.
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.
