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Income Investors Should Know That Karat Packaging Inc. (NASDAQ:KRT) Goes Ex-Dividend Soon
Income Investors Should Know That Karat Packaging Inc. (NASDAQ:KRT) Goes Ex-Dividend Soon

Yahoo

time11-05-2025

  • Business
  • Yahoo

Income Investors Should Know That Karat Packaging Inc. (NASDAQ:KRT) Goes Ex-Dividend Soon

It looks like Karat Packaging Inc. (NASDAQ:KRT) is about to go ex-dividend in the next four days. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase Karat Packaging's shares on or after the 16th of May will not receive the dividend, which will be paid on the 23rd of May. The company's next dividend payment will be US$0.45 per share, on the back of last year when the company paid a total of US$1.95 to shareholders. Looking at the last 12 months of distributions, Karat Packaging has a trailing yield of approximately 6.4% on its current stock price of US$30.26. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Karat Packaging is paying out an acceptable 73% of its profit, a common payout level among most companies. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out more than half (64%) of its free cash flow in the past year, which is within an average range for most companies. It's positive to see that Karat Packaging's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Karat Packaging Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Karat Packaging has grown its earnings rapidly, up 68% a year for the past five years. The current payout ratio suggests a good balance between rewarding shareholders with dividends, and reinvesting in growth. Earnings per share have been growing quickly and in combination with some reinvestment and a middling payout ratio, the stock may have decent dividend prospects going forwards. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last two years, Karat Packaging has lifted its dividend by approximately 136% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see. Should investors buy Karat Packaging for the upcoming dividend? Higher earnings per share generally lead to higher dividends from dividend-paying stocks over the long run. However, we'd also note that Karat Packaging is paying out more than half of its earnings and cash flow as profits, which could limit the dividend growth if earnings growth slows. In summary, it's hard to get excited about Karat Packaging from a dividend perspective. While it's tempting to invest in Karat Packaging for the dividends alone, you should always be mindful of the risks involved. Case in point: We've spotted 1 warning sign for Karat Packaging you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Income Investors Should Know That Karat Packaging Inc. (NASDAQ:KRT) Goes Ex-Dividend Soon
Income Investors Should Know That Karat Packaging Inc. (NASDAQ:KRT) Goes Ex-Dividend Soon

Yahoo

time11-05-2025

  • Business
  • Yahoo

Income Investors Should Know That Karat Packaging Inc. (NASDAQ:KRT) Goes Ex-Dividend Soon

It looks like Karat Packaging Inc. (NASDAQ:KRT) is about to go ex-dividend in the next four days. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase Karat Packaging's shares on or after the 16th of May will not receive the dividend, which will be paid on the 23rd of May. The company's next dividend payment will be US$0.45 per share, on the back of last year when the company paid a total of US$1.95 to shareholders. Looking at the last 12 months of distributions, Karat Packaging has a trailing yield of approximately 6.4% on its current stock price of US$30.26. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Karat Packaging is paying out an acceptable 73% of its profit, a common payout level among most companies. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out more than half (64%) of its free cash flow in the past year, which is within an average range for most companies. It's positive to see that Karat Packaging's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Karat Packaging Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Karat Packaging has grown its earnings rapidly, up 68% a year for the past five years. The current payout ratio suggests a good balance between rewarding shareholders with dividends, and reinvesting in growth. Earnings per share have been growing quickly and in combination with some reinvestment and a middling payout ratio, the stock may have decent dividend prospects going forwards. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last two years, Karat Packaging has lifted its dividend by approximately 136% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see. Should investors buy Karat Packaging for the upcoming dividend? Higher earnings per share generally lead to higher dividends from dividend-paying stocks over the long run. However, we'd also note that Karat Packaging is paying out more than half of its earnings and cash flow as profits, which could limit the dividend growth if earnings growth slows. In summary, it's hard to get excited about Karat Packaging from a dividend perspective. While it's tempting to invest in Karat Packaging for the dividends alone, you should always be mindful of the risks involved. Case in point: We've spotted 1 warning sign for Karat Packaging you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Is There Now An Opportunity In Karat Packaging Inc. (NASDAQ:KRT)?
Is There Now An Opportunity In Karat Packaging Inc. (NASDAQ:KRT)?

Yahoo

time15-03-2025

  • Business
  • Yahoo

Is There Now An Opportunity In Karat Packaging Inc. (NASDAQ:KRT)?

While Karat Packaging Inc. (NASDAQ:KRT) might not have the largest market cap around , it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$33.46 and falling to the lows of US$27.87. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Karat Packaging's current trading price of US$28.34 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Karat Packaging's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Karat Packaging The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 18.93x is currently trading slightly below its industry peers' ratio of 19.05x, which means if you buy Karat Packaging today, you'd be paying a decent price for it. And if you believe that Karat Packaging should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. So, is there another chance to buy low in the future? Given that Karat Packaging's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 22% over the next couple of years, the future seems bright for Karat Packaging. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? KRT's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at KRT? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on KRT, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for KRT, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 1 warning sign for Karat Packaging you should be aware of. If you are no longer interested in Karat Packaging, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

3 Top US Dividend Stocks For Your Portfolio
3 Top US Dividend Stocks For Your Portfolio

Yahoo

time19-02-2025

  • Business
  • Yahoo

3 Top US Dividend Stocks For Your Portfolio

As the S&P 500 reaches record highs, buoyed by a late trading rally, investors are closely watching the market's momentum and its implications for portfolio strategies. In such an environment, dividend stocks can offer a blend of income and stability, making them an attractive option for those looking to capitalize on the current market dynamics while potentially mitigating risk. Name Dividend Yield Dividend Rating Columbia Banking System (NasdaqGS:COLB) 5.17% ★★★★★★ FMC (NYSE:FMC) 6.10% ★★★★★★ Peoples Bancorp (NasdaqGS:PEBO) 4.84% ★★★★★★ Dillard's (NYSE:DDS) 5.16% ★★★★★★ Southside Bancshares (NYSE:SBSI) 4.55% ★★★★★★ Isabella Bank (OTCPK:ISBA) 4.48% ★★★★★★ Citizens & Northern (NasdaqCM:CZNC) 5.20% ★★★★★★ First Interstate BancSystem (NasdaqGS:FIBK) 5.74% ★★★★★★ Virtus Investment Partners (NYSE:VRTS) 4.82% ★★★★★★ Archer-Daniels-Midland (NYSE:ADM) 4.44% ★★★★★★ Click here to see the full list of 135 stocks from our Top US Dividend Stocks screener. Let's review some notable picks from our screened stocks. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Karat Packaging Inc. manufactures and distributes single-use disposable products for restaurant and foodservice settings, with a market cap of approximately $644.38 million. Operations: Karat Packaging Inc. generates revenue primarily from the manufacturing and supply of a diverse range of single-use products, totaling $416.57 million. Dividend Yield: 5.2% Karat Packaging's dividend yield of 5.23% places it in the top 25% of US dividend payers, with recent increases reflecting a rise to $0.45 per share. However, its payout ratio of 84.9% and cash payout ratio of 76.5% suggest moderate coverage by earnings and cash flows, respectively. Despite a volatile and short dividend history, earnings are forecasted to grow annually at 12.73%, potentially supporting future stability in payouts. Click to explore a detailed breakdown of our findings in Karat Packaging's dividend report. Insights from our recent valuation report point to the potential overvaluation of Karat Packaging shares in the market. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Magic Software Enterprises Ltd. offers proprietary application development, vertical software solutions, business process integration, IT outsourcing services, and cloud-based services both in Israel and internationally, with a market cap of $627.98 million. Operations: Magic Software Enterprises Ltd. generates revenue through proprietary application development, vertical software solutions, business process integration, IT outsourcing software services, and cloud-based services across Israel and international markets. Dividend Yield: 3.3% Magic Software Enterprises offers a dividend yield of 3.33%, below the top quartile of US dividend payers. Its dividends are well-covered, with a payout ratio of 62.2% and cash payout ratio of 45.2%. Despite past volatility in payments, recent increases over the last decade indicate potential for growth. Trading at a lower price-to-earnings ratio than its industry peers, Magic Software presents good value but lacks dividend stability and reliability historically. Delve into the full analysis dividend report here for a deeper understanding of Magic Software Enterprises. Upon reviewing our latest valuation report, Magic Software Enterprises' share price might be too pessimistic. Simply Wall St Dividend Rating: ★★★★★★ Overview: Dillard's, Inc. operates retail department stores across the southeastern, southwestern, and midwestern United States with a market cap of approximately $7.84 billion. Operations: Dillard's, Inc. generates revenue primarily through its Retail Operations segment, which accounts for $6.44 billion, complemented by its Construction segment contributing $295.67 million. Dividend Yield: 5.2% Dillard's offers a robust dividend yield of 5.16%, placing it in the top quartile of US dividend payers. Its dividends have been stable and growing over the past decade, with a low payout ratio of 2.6% ensuring coverage by earnings and a cash payout ratio of 61.9% indicating sustainability through cash flows. A recent special dividend of US$25 per share highlights its commitment to returning capital to shareholders, although future earnings are forecasted to decline significantly. Click here and access our complete dividend analysis report to understand the dynamics of Dillard's. Our comprehensive valuation report raises the possibility that Dillard's is priced lower than what may be justified by its financials. Embark on your investment journey to our 135 Top US Dividend Stocks selection here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:KRT NasdaqGS:MGIC and NYSE:DDS. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@

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