On the 15 June 2018, Monmouth Real Estate Investment Corporation (NYSE:MNR) will be paying shareholders an upcoming dividend amount of $0.17 per share. However, investors must have bought the company’s stock before 14 May 2018 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Monmouth Real Estate Investment and boost your portfolio income stream? Well, keep on reading because today, 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 Monmouth Real Estate Investment
5 checks you should use to assess 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?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has it increased its dividend per share amount over the past?
- Does earnings amply cover its dividend payments?
- Will it be able to continue to payout at the current rate in the future?
How well does Monmouth Real Estate Investment fit our criteria?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 company currently pays out 154.54% of its earnings as a dividend, according to its trailing twelve-month data, meaning that a portion of dividend payments are funded by retained 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. MNR has increased its DPS from $0.6 to $0.68 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 MNR a true dividend rockstar. In terms of its peers, Monmouth Real Estate Investment generates a yield of 4.27%, which is on the low-side for REITs stocks.
With this in mind, I definitely rank Monmouth Real Estate Investment 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for MNR’s future growth? Take a look at our free research report of analyst consensus for MNR’s outlook.
- Valuation: What is MNR 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 MNR is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.