【silo vape not working】Why RPC Group Plc (LON:RPC) Is A Top Dividend Stock

RPC Group Plc (

LON:RPC

) has pleased shareholders over the past 10 years,silo vape not working by paying out dividends. The company currently pays out a dividend yield of 4.3% to shareholders, making it a relatively attractive dividend stock. Does RPC Group tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.

See our latest analysis for RPC Group

Here’s how I find good dividend stocks

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

Is its annual yield among the top 25% of dividend-paying companies?

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

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:RPC Historical Dividend Yield January 2nd 19

How does RPC Group fare?

The current trailing twelve-month payout ratio for the stock is 46%, which means that the dividend is covered by earnings. However, going forward, analysts expect RPC’s payout to fall to 40% of its earnings. Assuming a constant share price, this equates to a dividend yield of 4.8%. However, EPS should increase to £0.71, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

When considering the sustainability of dividends,

it is also worth checking the cash flow of a company

. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. RPC has increased its DPS from £0.090 to £0.28 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.

Relative to peers, RPC Group produces a yield of 4.3%, which is high for Packaging stocks but still below the market’s top dividend payers.

Next Steps:

With these dividend metrics in mind, I definitely rank RPC Group 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three fundamental factors you should further examine:

Future Outlook

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

free research report of analyst consensus

for RPC’s outlook.

Valuation

: What is RPC 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 RPC 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]

.

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