If you are interested in cashing in on CH Robinson Worldwide Inc’s (NASDAQ:CHRW) upcoming dividend of $0.46 per share, you only have 3 days left to buy the shares before its ex-dividend date, 15 December 2017, in time for dividends payable on the 29 December 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine CHRW’s latest financial data to analyse its dividend characteristics. View our latest analysis for C.H. Robinson Worldwide

5 questions to ask before buying 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 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?

• Is is able to pay the current rate of dividends from its earnings?

• Will it be able to continue to payout at the current rate in the future?

Does C.H. Robinson Worldwide pass our checks?

The current payout ratio for the stock is 53.53%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 60.36%, leading to a dividend yield of 2.20%. Moreover, EPS should increase to $3.64. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of CHRW it has increased its DPS from $0.88 to $1.84 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. Compared to its peers, CHRW has a yield of 2.08%, which is on the low-side for air freight and logistics stocks.

What this means for you:

Are you a shareholder?

Are you a shareholder? Investors of C.H. Robinson Worldwide can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, CHRW is one worth keeping around in your income portfolio. However, depending on your portfolio composition, it may be beneficial exploring other dividend stocks to increase diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? Taking into account the dividend metrics, C.H. Robinson Worldwide ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Whether or not you like CHRW as a dividend stock, it’s still worth checking the price tag. Is C.H. Robinson Worldwide overvalued or is it actually a bargain? Dig deeper in our latest free analysis to find out!

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.