SpareBank 1 SMN (OB:MING): 4 Days To Buy Before The Ex-Dividend Date
Have you been keeping an eye on SpareBank 1 SMN’s (OB:MING) upcoming dividend of øre5.10 per share payable on the 05 April 2019? Then you only have 4 days left before the stock starts trading ex-dividend on the 29 March 2019. What does this mean for current shareholders and potential investors? Below, I will explain how holding SpareBank 1 SMN can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
View our latest analysis for SpareBank 1 SMN
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How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
How does SpareBank 1 SMN fare?
The company currently pays out 51% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 55% which, assuming the share price stays the same, leads to a dividend yield of around 6.2%. In addition to this, EPS is forecasted to fall to NOK9.81 in the upcoming year.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.
Relative to peers, SpareBank 1 SMN generates a yield of 5.5%, which is high for Banks stocks but still below the market’s top dividend payers.
Next Steps:
With these dividend metrics in mind, I definitely rank SpareBank 1 SMN as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. There are three pertinent factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for MING’s future growth? Take a look at our free research report of analyst consensus for MING’s outlook.
Valuation: What is MING 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 MING is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
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.
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. Thank you for reading.
