A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Baker Hughes, a GE company (NYSE:BHGE) has started paying a dividend to shareholders. It currently trades on a yield of 2.7%. Let’s dig deeper into whether Baker Hughes a GE should have a place in your portfolio.
Baker Hughes a GE has a trailing twelve-month payout ratio of 158%, meaning the dividend is not sufficiently covered by its earnings. However, going forward, analysts expect BHGE’s payout to fall into a more sustainable range of 29% of its earnings. Assuming a constant share price, this equates to a dividend yield of 2.8%. Furthermore, EPS should increase to $1.1, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
Source: Simply Wall St.
Related Articles:
- Stock Dividends, The Gift of Nothing
- What's More Powerful Than Compound Interest?
- How To Buy Dividend Stocks At The Bottom
- 8 Stocks That Have Paid Dividends Since The 1800s
- 5 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
Zooming in on NYSE:BHGE’s 2.7% Dividend Yield
Posted by D4L | Thursday, March 21, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Investors looking for the best dividend stocks for 2021 and beyond should take a closer look at the stocks with the longest histories of ann...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Are you looking for a great dividend stock to add to your portfolio? There are many options out there, but the reality is that many just don...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.