Read This Before Buying Cominar Real Estate Investment Trust (TSX:CUFUN) For Its Upcoming $0.1 Dividend – Simply Wall St News
Have you been waiting for Cominar Real Estate Investment Trust’s (TSX:CUF.UN) upcoming dividend of CA$0.1 per share? Then you only have to wait 3 more days before the stock pays out on 29 December 2017, and starts trading ex-dividend on the 14 December 2017. What does this mean for current shareholders and potential investors? Below, I will explain how holding CUF.UN can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for CUF.UN
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
- Is it paying an annual yield above 75% of dividend payers?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has the amount of dividend per share grown over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Cominar Real Estate Investment Trust fare?
The current payout ratio for CUF.UN is 120.15%, which means that the dividend is not well-covered by its earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. The reality facing CUF.UN investors is that whilst it has continued to pay shareholders dividend, there has not been any increase in the level of dividends paid in the past decade. However, income investors that value stability over growth may still find CUF.UN appealing. Compared to its peers, CUF.UN generates a yield of 8.06%, which is high for equity real estate investment trusts (reits) stocks.
What this means for you:
Are you a shareholder? If CUF.UN is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be valuable exploring other dividend stocks as alternatives to CUF.UN or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? If you are building an income portfolio, then Cominar Real Estate Investment Trust is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, CUF.UN could still offer some interesting investment opportunities. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Check our latest free fundmental analysis to explore other aspects of CUF.UN.
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