Plato Income Maximiser Limited (ASX:PL8): What You Have To Know Before Buying For The Upcoming Dividend
Attention dividend hunters! Plato Income Maximiser Limited (ASX:PL8) will be distributing its dividend of A$0 per share in 3 days time, on the 30 November 2017, and will start trading ex-dividend on the 15 November 2017. Is this future income a persuasive enough catalyst for investors to think about PL8 as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Plato Income Maximiser
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Is its annual yield among the top 25% of dividend-paying companies?
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Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
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Has dividend per share risen in the past couple of years?
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Is is able to pay the current rate of dividends from its earnings?
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Will it have the ability to keep paying its dividends going forward?
How does Plato Income Maximiser fare?
Plato Income Maximiser has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Plato Income Maximiser as a dividend investment. Last year was the company’s first dividend payment, so it is certainly early days. The standard practice for reliable payers is to look for 10 or so years of track record. Compared to its peers, PL8 has a yield of 5.00%, which is high for capital markets stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in PL8 right now, in terms of its dividend attributes. It may be worth exploring other dividend stocks as alternatives to PL8 or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Now you know to keep in mind the reason why investors should be careful investing in PL8 for the dividend. On the other hand, if you are not strictly just a dividend investor, PL8 could still be offering some interesting investment opportunities. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Dig deeper in our latest free fundmental analysis to explore other aspects of PL8.
To help readers see pass 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.