4 Days Left To Cash In On T&G Global Limited (NZSE:TGG) Dividend

If you are interested in cashing in on T&G Global Limited’s (NZSE:TGG) upcoming dividend of NZ$0.06 per share, you only have 4 days left to buy the shares before its ex-dividend date, 20 December 2018, in time for dividends payable on the 31 December 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine T&G Global’s latest financial data to analyse its dividend characteristics.

Check out our latest analysis for T&G Global

Here’s how I find good dividend stocks

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 consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has it increased its dividend per share amount over the past?

• Is its earnings sufficient to payout dividend at the current rate?

• Will it be able to continue to payout at the current rate in the future?

Does T&G Global pass our checks?

The company currently pays out 119% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is not well-covered by its 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 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time.

Compared to its peers, T&G Global has a yield of 3.9%, which is on the low-side for Food stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in T&G Global for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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. I’ve put together three essential aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for TGG’s future growth? Take a look at our free research report of analyst consensus for TGG’s outlook.

2. Valuation: What is TGG 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 TGG is currently mispriced by the market.

3. 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.