Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Historically, Marine Products Corporation (NYSE:MPX) has paid a dividend to shareholders. It currently yields 2.7%. Does Marine Products tick all the boxes of a great dividend stock? Below, Iâll take you through my analysis.
See our latest analysis for Marine Products
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
The current trailing twelve-month payout ratio for the stock is 51%, 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.
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. 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, itâs dividend stocks and their constant income stream. In the case of MPX it has increased its DPS from $0.26 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. These are all positive signs of a great, reliable dividend stock.
Relative to peers, Marine Products produces a yield of 2.7%, which is high for Leisure stocks but still below the marketâs top dividend payers.
With this in mind, I definitely rank Marine Products as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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, Iâve compiled three key factors you should further research:
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company announcements.
The author is an independent contributor and at the time of
publication had no position in the stocks mentioned. For errors
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