Yahoo Finance Jefferies Financial Group Inc (NYSE:JEF): 4 Days To Buy Before The Ex-Dividend Date
Have you been keeping an eye on Jefferies Financial Group Inc’s (NYSE:JEF) upcoming dividend of US$0.13 per share payable on the 30 November 2018? Then you only have 4 days left before the stock starts trading ex-dividend on the 16 November 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Jefferies Financial Group’s latest financial data to analyse its dividend characteristics.
Check out our latest analysis for Jefferies Financial Group
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% 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?
Can it afford to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
Does Jefferies Financial Group pass our checks?
Jefferies Financial Group has a trailing twelve-month payout ratio of 71%, 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.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of JEF it has increased its DPS from $0.25 to $0.50 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 JEF a true dividend rockstar.
In terms of its peers, Jefferies Financial Group produces a yield of 2.3%, which is high for Diversified Financial stocks but still below the market’s top dividend payers.
Next Steps:
Taking into account the dividend metrics, Jefferies Financial Group ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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. I’ve put together three pertinent aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for JEF’s future growth? Take a look at our free research report of analyst consensus for JEF’s outlook.
Historical Performance: What has JEF’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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.
