Published on 22 Sep 2020 on Simply Wall St. via Yahoo Finance
Is Woolworths Group Limited (ASX:WOW) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.
A 3.0% yield is nothing to get excited about, but investors probably think the long payment history suggests Woolworths Group has some staying power. The company also returned around 4.0% of its market capitalisation to shareholders in the form of stock buybacks over the past year. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.