【a brasileira lisbon menu】How Does Totens Sparebank (OB:TOTG) Fare As A Dividend Stock?

Totens Sparebank (

OB:TOTG

) has pleased shareholders over the past 10 years,a brasileira lisbon menu by paying out dividends. The stock currently pays out a dividend yield of 6.6%, and has a market cap of øre747m. Does Totensrebank tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.

Check out our latest analysis for Totensrebank

5 checks you should do on a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

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

Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

Has dividend per share risen in the past couple of years?

Is its earnings sufficient to payout dividend at the current rate?

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

OB:TOTG Historical Dividend Yield January 2nd 19

How does Totensrebank fare?

Totensrebank has a trailing twelve-month payout ratio of 50%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 61% which, assuming the share price stays the same, leads to a dividend yield of around 6.9%. However, EPS is forecasted to fall to NOK15.08 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.

When thinking about whether a dividend is sustainable,

another factor to consider is the cash flow

. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality facing TOTG investors is that whilst it has continued to pay shareholders dividend, dividends are lower today, than they were a decade ago. Though this may not be a serious red flag, strong dividend stocks should always strive to increase its payout over time.

Relative to peers, Totensrebank produces a yield of 6.6%, which is high for Banks stocks.

Next Steps:

With these dividend metrics in mind, I definitely rank Totensrebank as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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 relevant aspects you should further research:

Story continues

Future Outlook

: What are well-informed industry analysts predicting for TOTG’s future growth? Take a look at our

free research report of analyst consensus

for TOTG’s outlook.

Valuation

: What is TOTG 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 TOTG is currently mispriced by the market.

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 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

[email protected]

.

View comments