Is BB a good candidate for income and dividend portfolio?


Aime
BlackBerry (BB) does not appear to be a strong candidate for an income and dividend portfolio based on the following points:
- Dividend History and Yield:
- BlackBerry has not paid dividends in the past 12 months1, and there is no scheduled dividend for the foreseeable future.
- The company's dividend yield is currently not available2.
- Payout Ratio and Financial Health:
- The payout ratio is not available3, which is a critical metric for assessing the sustainability of dividends.
- BlackBerry's free cash flow has been negative in several instances4, which is a red flag for the company's ability to sustain and grow dividends.
- Debt Levels and Financial Stability:
- The company's debt-to-equity ratio has been volatile, with recent figures showing higher levels of debt5.
- High debt levels can indicate financial instability, which may impact the company's ability to maintain a consistent dividend payment.
- Revenue and Profitability Trends:
- BlackBerry's revenue has shown fluctuations, with a recent decline in free cash flow and a negative net income growth rate6.
- The company's diluted EPS has also shown a decline over the past five years7, which may affect the company's ability to increase dividends in the future.
- Analyst Ratings and Stock Performance:
- Analysts have a "Hold" consensus rating on the stock8, which does not necessarily indicate a strong dividend investment case.
- The stock has experienced significant volatility and has not shown a strong upward trend, which may impact the overall returns of a dividend-focused portfolio.
In conclusion, BlackBerry's lack of recent dividend payments, high debt levels, and uncertain financial performance make it a less attractive candidate for an income and dividend portfolio. Investors seeking dividend-focused opportunities should look for companies with a consistent dividend history, low debt, and strong financial performance.
Source:
t
1.
BlackBerry (BB) Stock Dividend Date & History
more
less
Continue this conversation 

Explore
Screener
Analysis
Learn