Interested In Realogy Holdings Corp (NYSE:RLGY)’s Upcoming US$0.09 Dividend? You Have 2 Days Left
If you are interested in cashing in on Realogy Holdings Corp's (NYSE:RLGY) upcoming dividend of US$0.09 per share, you only have 2 days left to buy the shares before its ex-dividend date, 15 August 2018, in time for dividends payable on the 30 August 2018. Is this future income a persuasive enough catalyst for investors to think about Realogy Holdings 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 Realogy Holdings
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is its annual yield among the top 25% of dividend-paying companies?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has the amount of dividend per share grown over the past?
- Is is able 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 Realogy Holdings fare?
The company currently pays out 11.67% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 14.86%, leading to a dividend yield of 1.72%. However, EPS is forecasted to fall to $1.95 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
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 is that it is too early to consider Realogy Holdings as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
In terms of its peers, Realogy Holdings generates a yield of 1.70%, which is on the low-side for Real Estate stocks.
Next Steps:
Whilst there are few things you may like about Realogy Holdings from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I've put together three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for RLGY’s future growth? Take a look at our free research report of analyst consensus for RLGY’s outlook.
- Valuation: What is RLGY 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 RLGY is currently mispriced by the market.
- Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
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.