Have you been waiting for Rocky Mountain Dealerships Inc’s (TSX:RME) upcoming dividend of CA$0.12 per share? Then you only have to wait 4 more days before the stock pays out on 29 December 2017, and starts trading ex-dividend on the 29 November 2017. So if you want to cash in on RME’s dividend payment and are not yet a shareholder, you have only few days left! Today I am going to take a look at RME’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Rocky Mountain Dealerships
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
- Is its annual yield among the top 25% of dividend-paying companies?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has it increased its dividend per share amount over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Will it be able to continue to payout at the current rate in the future?
Does Rocky Mountain Dealerships pass our checks?
The current payout ratio for the stock is 45.92%, meaning the dividend is sufficiently covered by 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 there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. RME has increased its DPS from CA$0.18 to CA$0.46 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes RME a true dividend rockstar. Relative to peers, RME has a yield of 3.61%, which is high for trading companies and distributors stocks.
What this means for you:
Are you a shareholder? Investors of Rocky Mountain Dealerships can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, RME is one worth keeping around in your income portfolio. But, depending on your current portfolio, it may be beneficial exploring other income stocks to improve your diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Considering the dividend attributes we analyzed above, RME is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. Another aspect to consider for RME is how much it’s actually worth. Can you still benefit from a mispricing of the stock? Check our latest free analysis to find out!