Should You Buy Arcos Dorados Holdings Inc (NYSE:ARCO) For Its Dividend?
Arcos Dorados Holdings Inc (NYSE:ARCO) has returned to shareholders over the past 7 years, an average dividend yield of 1.00% annually. Check out our latest analysis for Arcos Dorados Holdings. How I analyze a dividend stock. When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:. In the near future, analysts are predicting a higher payout ratio of 31.27%, leading to a dividend yield of 2.32%. However, EPS is forecasted to fall to $0.38 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. Whilst there are few things you may like about Arcos Dorados Holdings from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity.