Only 3 Days Left To Jersey Electricity plc (LON:JEL)’s Ex-Dividend Date, Is It Worth Buying?

Have you been keeping an eye on Jersey Electricity plc’s (LSE:JEL) upcoming dividend of £0.06 per share payable on the 29 June 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 31 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Jersey Electricity’s latest financial data to analyse its dividend attributes. Check out our latest analysis for Jersey Electricity

How I analyze a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Is their annual yield among the top 25% of dividend payers?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has dividend per share amount increased over the past?

• Can it afford to pay the current rate of dividends from its earnings?

• Will it have the ability to keep paying its dividends going forward?

LSE:JEL Historical Dividend Yield May 27th 18

How well does Jersey Electricity fit our criteria?

Jersey Electricity has a trailing twelve-month payout ratio of 48.49%, which means that the dividend is 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. JEL has increased its DPS from £0.07 to £0.18 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes JEL a true dividend rockstar. In terms of its peers, Jersey Electricity generates a yield of 3.68%, which is on the low-side for Electric Utilities stocks.

Next Steps:

Taking into account the dividend metrics, Jersey Electricity ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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. I’ve put together three relevant aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for JEL’s future growth? Take a look at our free research report of analyst consensus for JEL’s outlook.

2. Valuation: What is JEL 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 JEL is currently mispriced by the market.

3. Other 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 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.