Attention dividend hunters! CVB Financial Corp (NASDAQ:CVBF) will be distributing its dividend of $0.14 per share on the 22 January 2018, and will start trading ex-dividend in 3 days time on the 04 January 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into CVB Financial’s latest financial data to analyse its dividend attributes. Check out our latest analysis for CVB Financial
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is it the top 25% annual dividend yield payer?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has it increased its dividend per share amount over the past?
- Does earnings amply cover its dividend payments?
- Will the company be able to keep paying dividend based on the future earnings growth?
How well does CVB Financial fit our criteria?
The company currently pays out 50.02% of its earnings as a dividend, which means that the dividend is covered by earnings. Going forward, analysts expect CVBF’s payout to remain around the same level at 47.13% of its earnings, which leads to a dividend yield of around 2.47%. Moreover, EPS should increase to $1.14. 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 CVBF it has increased its DPS from $0.34 to $0.56 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 CVBF a true dividend rockstar. Compared to its peers, CVB Financial generates a yield of 2.38%, which is on the low-side for banks stocks.
What this means for you:
Are you a shareholder? With CVB Financial producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. But, depending on your portfolio composition, it may be beneficial exploring other dividend stocks to improve your diversification, or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? With these dividend metrics in mind, I definitely rank CVB Financial as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. No matter how much of a cash cow the stock is, it is not worth an infinite price. Is CVB Financial still a bargain? Dig deeper in our latest free analysis to find out!
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Founder of the event-driven, value-oriented hedge fund Third Point, Daniel Loeb is one of the most successful activist investors on the market today. Explore his portfolio’s top holdings, see how he diversifies his investments, past performance and growth estimates. Click here to view a FREE detailed infographic analysis of Daniel Loeb’s investment portfolio.Bagikan Berita Ini
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