Yahoo Finance Income Investors Should Know The Keyera Corp (TSE:KEY) Ex-Dividend Date
Important news for shareholders and potential investors in Keyera Corp (TSE:KEY): The dividend payment of CA$0.15 per share will be distributed to shareholders on 15 October 2018, and the stock will begin trading ex-dividend at an earlier date, 21 September 2018. Should you diversify into Keyera and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
See our latest analysis for Keyera
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is its annual yield among the top 25% of dividend-paying companies?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share risen in the past couple of years?
Can it afford to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
Does Keyera pass our checks?
Keyera has a trailing twelve-month payout ratio of 104%, meaning the dividend is not sufficiently covered by its earnings. In the near future, analysts are predicting a payout ratio of 103%, leading to a dividend yield of around 5.1%. In addition to this, EPS should increase to CA$1.81.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. KEY has increased its DPS from CA$0.90 to CA$1.8 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
In terms of its peers, Keyera produces a yield of 5.0%, which is high for Oil and Gas stocks but still below the market’s top dividend payers.
Next Steps:
Whilst there are few things you may like about Keyera 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. Below, I’ve compiled three important factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for KEY’s future growth? Take a look at our free research report of analyst consensus for KEY’s outlook.
Valuation: What is KEY 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 KEY 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.
