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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Buy stable dividend stocks that pay more than any other relatively risk-free bond in the world will. As investors grow tired of not even bea...
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
The U.S. economy officially entered into a recession in February, and challenging conditions will likely continue in the near future. The co...
-
Energy Transfer (NYSE:ET) pays a monster cash distribution. Given the big slide in its unit price, -- they're down more than 50% in the ...
-
The three cybersecurity investments to purchase offer ways to profit from intellectual property protection and their importance shined on Ju...
-
Prices of energy commodities like natural gas are important for consumers and investors alike. Earlier in the year, natural gas prices in th...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.