On the 02 November 2018, Belvoir Lettings plc (LON:BLV) will be paying shareholders an upcoming dividend amount of UK£0.034 per share. However, investors must have bought the company’s stock before 20 September 2018 in order to qualify for the payment. That means you have only 2 days left! Should you diversify into Belvoir Lettings 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.
See our latest analysis for Belvoir Lettings
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
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Does it pay an annual yield higher than 75% of dividend payers?
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Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
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Has it increased its dividend per share amount over the past?
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Is is able to pay the current rate of dividends from its earnings?
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Will it be able to continue to payout at the current rate in the future?
Does Belvoir Lettings pass our checks?
Belvoir Lettings has a trailing twelve-month payout ratio of 60.4%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect BLV’s payout to remain around the same level at 56.7% of its earnings, which leads to a dividend yield of around 6.6%. Moreover, EPS is forecasted to fall to £0.11 in the upcoming year.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view Belvoir Lettings as a dividend investment. It has only been consistently paying dividends for 6 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Belvoir Lettings produces a yield of 6.5%, which is high for Real Estate stocks.
Next Steps:
Taking into account the dividend metrics, Belvoir Lettings ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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 important aspects you should further research: