Yahoo Movies 2 Days Left Before TrustCo Bank Corp NY (NASDAQ:TRST) Will Start Trading Ex-Dividend, Should You Buy?
Important news for shareholders and potential investors in TrustCo Bank Corp NY (NASDAQ:TRST): The dividend payment of US$0.068 per share will be distributed into shareholder on 01 October 2018, and the stock will begin trading ex-dividend at an earlier date, 06 September 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding TrustCo Bank Corp NY can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
See our latest analysis for TrustCo Bank Corp NY
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is its annual yield among the top 25% of dividend-paying companies?
Has it paid dividend every year without dramatically reducing payout in the past?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does TrustCo Bank Corp NY fare?
The company currently pays out 50.4% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
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. TRST investors will be well aware there has not been any increase in the dividend payments over the last 10 years, although the payments have at least been steady. However, income investors that value stability over growth may still find TRST appealing.
Compared to its peers, TrustCo Bank Corp NY produces a yield of 2.9%, which is on the low-side for Mortgage stocks.
Next Steps:
If you are building an income portfolio, then TrustCo Bank Corp NY is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, 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. Below, I’ve compiled three pertinent aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for TRST’s future growth? Take a look at our free research report of analyst consensus for TRST’s outlook.
Valuation: What is TRST 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 TRST is currently mispriced by the market.
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 editorial-team@simplywallst.com.
