【the inner cycle beverly ma】Should Union Bankshares Corporation (NASDAQ:UBSH) Be Part Of Your Dividend Portfolio?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Historically,the inner cycle beverly ma Union Bankshares Corporation (
NASDAQ:UBSH
) has been paying a dividend to shareholders. Today it yields 3.3%. Does Union Bankshares tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.
See our latest analysis for Union Bankshares
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is their annual yield among the top 25% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share amount increased 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?
NasdaqGS:UBSH Historical Dividend Yield January 1st 19
How does Union Bankshares fare?
The company currently pays out 43% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 32% which, assuming the share price stays the same, leads to a dividend yield of 3.4%. However, EPS should increase to $2.67, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
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.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. 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.
In terms of its peers, Union Bankshares has a yield of 3.3%, which is high for Banks stocks but still below the market’s top dividend payers.
Next Steps:
Keeping in mind the dividend characteristics above, Union Bankshares is definitely worth considering for investors looking to build a dedicated income 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. I’ve put together three important aspects you should look at:
Future Outlook
: What are well-informed industry analysts predicting for UBSH’s future growth? Take a look at our
free research report of analyst consensus
for UBSH’s outlook.
Valuation
: What is UBSH 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 UBSH 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
.
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
.
View comments
(责任编辑:Focus)
- S.Korea's Moon replaces ministers as sinking ratings put policy agenda at risk
- EU open to compensating firms hit by coronavirus, more help for Italy
- Coronavirus Could Hold Up Annual Ocean Shipping Contracts
- Why Consumer Financial Protection Bureau's structure is a real threat to small business, individual liberty
- Meal delivery firms branch out into groceries during crisis
- Is Innovative Industrial Properties (IIPR) Stock Outpacing Its Finance Peers This Year?
- Maybe the Coronavirus Didn’t End the Bull Market
- Blockchain Could Make Dismantling Nuclear Warheads More Secure: UK Report
- The TriNet Group (NYSE:TNET) Share Price Has Gained 256%, So Why Not Pay It Some Attention?
- From wagyu beef to melons, Japan's $2.2 trillion virus rescue piques struggling firms
- A Sliding Share Price Has Us Looking At Malibu Boats, Inc.'s (NASDAQ:MBUU) P/E Ratio
- Calculating The Fair Value Of Motorola Solutions, Inc. (NYSE:MSI)
- Is Cobre (ASX:CBE) In A Good Position To Deliver On Growth Plans?
-
Warren calls out Sanders for supporters' ‘really ugly’ online attacks
Elizabeth Warren, hours after exiting the 2020 presidential race, called outBernie Sandersfor not do ...[详细] -
Interactive Brokers' (IBKR) October DARTs Up on Higher Trading
Shares ofInteractive Brokers Group, Inc.IBKR gained 2% following the release of its Electronic Broke ...[详细] -
NEW YORK, NY / ACCESSWIRE / May 1, 2020 /Bernstein Liebhard, a nationally acclaimed investor rights ...[详细]
-
Americans have a mix of concern and hope about the economy
Get all the latest news on coronavirus and more delivered daily to your inbox.Sign up here.The prese ...[详细] -
4 Top Momentum Stocks Powered by Driehaus Strategy
Investors who have the propensity to take higher risk can think of investing in momentum stocks to b ...[详细] -
Capstar Financial Holdings, Inc.(NASDAQ:CSTR) is about to trade ex-dividend in the next four days. Y ...[详细]
-
The Zacks Analyst Blog Highlights: Chegg, Tencent, GoDaddy, Fortinet and ServiceNow
For Immediate ReleaseChicago, IL – June 5, 2020 – Zacks.com announces the list of stocks featured in ...[详细] -
Sun Summit Minerals Phase 2 Drilling Update and Completion of IP Survey at the Buck Property
Vancouver, British Columbia--(Newsfile Corp. - November 5, 2020) - Sun Summit Minerals Corp. (TSXV: ...[详细] -
Harpoon Therapeutics Reports Third Quarter 2020 Financial Results and Provides Corporate Update
SOUTH SAN FRANCISCO, Calif., Nov. 04, 2020 (GLOBE NEWSWIRE) -- Harpoon Therapeutics, Inc. (Nasdaq: H ...[详细] -
Exclusive: U.S. sanctions have idled a quarter of Iranian oil rigs
By Bozorgmehr SharafedinLONDON (Reuters) - At least a quarter of Iran's oil rigs are out of action a ...[详细]
How to Time the Markets Like an Investing Pro - April 01, 2020
Global stocks tumble as US-China tensions escalate
- Should You Sell in May or Buy 5 Top Coronavirus-Immune Stocks?
- ZoomInfo IPO: What You Need To Know
- ServiceNow (NOW) Set to Acquire AI-Focused Startup Element AI
- Thai Airways rescue plan is its last chance, says PM
- Democratic DEMZ ETF Launches On Election Day: What Investors Should Know
- Guidewire (GWRE) Q3 Earnings & Revenues Top Estimates, Stock Up
- Warren calls out Sanders for supporters' ‘really ugly’ online attacks