Important news for shareholders and potential investors in A&W Revenue Royalties Income Fund (TSX:AW.UN): The dividend payment of CA$0.14 per share will be distributed into shareholder on 28 February 2018, and the stock will begin trading ex-dividend at an earlier date, 14 February 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding A&W Revenue Royalties Income Fund can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for A&W Revenue Royalties Income Fund
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
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Is its annual yield among the top 25% of dividend-paying companies?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has the amount of dividend per share grown over the past?
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Can it afford 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?
How does A&W Revenue Royalties Income Fund fare?
A&W Revenue Royalties Income Fund has a trailing twelve-month payout ratio of 87.20%, meaning the dividend is sufficiently 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. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of AW.UN it has increased its DPS from CA$1.37 to CA$1.63 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes AW.UN a true dividend rockstar. Relative to peers, A&W Revenue Royalties Income Fund generates a yield of 5.40%, which is high for Hospitality stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank A&W Revenue Royalties Income Fund as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. Below, I’ve compiled three fundamental aspects you should further examine: