Dividends4Life: Is Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) A Good Dividend Stock?

Today we’ll take a closer look at Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) from a dividend investor’s perspective. Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company’s dividend doesn’t live up to expectations. In this case, Hannon Armstrong Sustainable Infrastructure Capital likely looks attractive to dividend investors, given its 5.0% dividend yield and six-year payment history. It sure looks interesting on these metrics – but there’s always more to the story .

Dividend investors should always want to know if a) a company’s dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Hannon Armstrong Sustainable Infrastructure Capital paid out almost all of its cash flow and profit as dividends, leaving little to reinvest in the business. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we’d like. With this information in mind, we think Hannon Armstrong Sustainable Infrastructure Capital may not be an ideal dividend stock. Companies that are growing earnings tend to be the best dividend stocks over the long term.

Source: Simply Wall St.

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