【hickory at nicewonder farm and vineyards】Does Elisa Oyj (HEL:ELISA) Have A Place In Your Portfolio?

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Over the past 10 years Elisa Oyj (

HEL:ELISA

) has been paying dividends to shareholders. The company currently pays out a dividend yield of 4.5% to shareholders, making it a relatively attractive dividend stock. Should it have a place in your portfolio? Let’s take a look at Elisa Oyj in more detail.

See our latest analysis for Elisa Oyj

How I analyze a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

Does it pay an annual yield higher than 75% of dividend payers?

Does it consistently pay out dividends without missing a payment of significantly cutting payout?

Has it increased its dividend per share amount 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?

HLSE:ELISA Historical Dividend Yield February 1st 19

How well does Elisa Oyj fit our criteria?

Elisa Oyj has a trailing twelve-month payout ratio of 85%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect ELISA’s payout to remain around the same level at 89% of its earnings. Assuming a constant share price, this equates to a dividend yield of around 5.2%. Furthermore, EPS should increase to €2.06.

When assessing the forecast sustainability of a dividend

it is also worth considering the cash flow of the business

. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. ELISA has increased its DPS from €0.80 to €1.65 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. This is an impressive feat, which makes ELISA a true dividend rockstar.

In terms of its peers, Elisa Oyj generates a yield of 4.5%, which is on the low-side for Telecom stocks.

Next Steps:

With this in mind, I definitely rank Elisa Oyj as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three key aspects you should further examine:

Future Outlook

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

free research report of analyst consensus

for ELISA’s outlook.

Valuation

: What is ELISA 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 ELISA 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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