Interested In The Keg Royalties Income Fund (TSE:KEG.UN)’s Upcoming $0.09 Dividend? You Have 3 Days Left

Attention dividend hunters! The Keg Royalties Income Fund (TSX:KEG.UN) will be distributing its dividend of CA$0.09 per share in 3 days time, on the 29 December 2017, and will start trading ex-dividend on the 20 December 2017. Is this future income a persuasive enough catalyst for investors to think about Keg Royalties Income Fund as an investment today? Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Keg Royalties Income Fund

How I analyze a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Does it pay an annual yield higher than 75% of dividend payers?
• Has it paid dividend every year without dramatically reducing payout in the past?
• Has it increased its dividend per share amount over the past?
• Does earnings amply cover its dividend payments?
• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

Does Keg Royalties Income Fund pass our checks?

The current payout ratio for the stock is 72.73%, which means that the dividend is 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. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. The reality facing KEG.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 KEG.UN appealing. Relative to peers, Keg Royalties Income Fund has a yield of 5.65%, which is high for hospitality stocks.

What this means for you:

Are you a shareholder? Investors of Keg Royalties Income Fund can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Keg Royalties Income Fund is one worth keeping around in your income portfolio. However, depending on your current holdings, it may be valuable exploring other income stocks to improve your diversification, or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by checking out 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, Keg Royalties Income Fund 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. No matter how much of a cash cow Keg Royalties Income Fund is, it is not worth an infinite price. Is Keg Royalties Income Fund overvalued or is it actually a bargain? Check our latest free analysis to find out!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.