Shares of Rába Jármûipari Holding Nyrt. (BUSE:RABA) will begin trading ex-dividend in 3 days. To qualify for the dividend check of Ft17.96 per share, investors must have owned the shares prior to 20 May 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. Is this future income a persuasive enough catalyst for investors to think about Rába Jármûipari Holding Nyrt as an investment today? Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail.
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View our latest analysis for Rába Jármûipari Holding Nyrt
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does Rába Jármûipari Holding Nyrt pass our checks?
Rába Jármûipari Holding Nyrt has a trailing twelve-month payout ratio of 20%, 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 thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Rába Jármûipari Holding Nyrt as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Compared to its peers, Rába Jármûipari Holding Nyrt generates a yield of 1.5%, which is on the low-side for Machinery stocks.
Now you know to keep in mind the reason why investors should be careful investing in Rába Jármûipari Holding Nyrt 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 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 key aspects you should further examine:
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.