Shares of Revolution Bars Group plc (LSE:RBG) will begin trading ex-dividend in 3 days. To qualify for the dividend check of £0.03 per share, investors must have owned the shares prior to 09 November 2017, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine RBG’s latest financial data to analyse its dividend characteristics. View our latest analysis for Revolution Bars Group

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:

• 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 is able to pay the current rate of dividends from its earnings?

• Will the company be able to keep paying dividend based on the future earnings growth?

How does Revolution Bars Group fare?

The current payout ratio for the stock is 60.20%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 31.81% and dividends yield to be around 3.27%. Furthermore, EPS should increase to £0.13. This means the company should be able to continue to payout dividends. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Revolution Bars Group 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, RBG has a yield of 2.92%, which is high for hotels, restaurants and leisure stocks but still below the market’s top dividend payers.

What this means for you:

Are you a shareholder? Whilst there are few things you may like about Revolution Bars Group from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. It may be valuable exploring other dividend stocks as alternatives to RBG or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? Taking all the above into account, Revolution Bars Group is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. However, if you are not strictly just a dividend investor, RBG could still offer some interesting investment opportunities. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Check our latest free fundmental analysis to explore other aspects of RBG.

To help readers see pass 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.