How Does intu properties plc (LON:INTU) Fare As A Dividend Stock?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. In the past 10 years intu properties plc (LSE:INTU) has returned an average of 5.00% per year to investors in the form of dividend payouts. Should it have a place in your portfolio? Let’s take a look at intu properties in more detail. View our latest analysis for intu properties

5 checks you should do on a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is it the top 25% annual dividend yield payer?
  • Has it paid dividend every year without dramatically reducing payout in the past?
  • Has it increased its dividend per share amount over the past?
  • Is its earnings sufficient to payout dividend at the current rate?
  • Will it be able to continue to payout at the current rate in the future?

LSE:INTU Historical Dividend Yield May 10th 18
LSE:INTU Historical Dividend Yield May 10th 18

Does intu properties pass our checks?

REITs are a special-case dividend payer. This is because a high percentage of their earnings are required to be paid out as dividends. The current trailing twelve-month payout ratio for INTU is 86.78%, which is in-line with most other REIT stocks. In the near future, analysts are predicting a payout ratio of 93.78%, leading to a dividend yield of 7.28%. Moreover, EPS is forecasted to fall to £-0.32 in the upcoming year. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Not only have dividend payouts from intu properties fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends. Relative to peers, intu properties has a yield of 7.15%, which is high for REITs stocks.

Next Steps:

With this in mind, I definitely rank intu properties as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, 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. I’ve put together three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for INTU’s future growth? Take a look at our free research report of analyst consensus for INTU’s outlook.
  2. Valuation: What is INTU worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether INTU is currently mispriced by the market.
  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.