Important news for shareholders and potential investors in Pacific Industrial & Logistics REIT Plc (AIM:PILR): The dividend payment of £0.01 per share will be distributed into shareholder on 22 December 2017, and the stock will begin trading ex-dividend at an earlier date, 30 November 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into PILR’s latest financial data to analyse its dividend attributes. See our latest analysis for PILR
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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Is their annual yield among the top 25% of dividend payers?
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Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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Has the amount of dividend per share grown over the past?
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Is is able to pay the current rate of dividends from its earnings?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Pacific Industrial & Logistics REIT pass our checks?
Pacific Industrial & Logistics REIT has a payout ratio of 15.57%, which means that the dividend is 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. The reality is that it is too early to consider Pacific Industrial & Logistics REIT as a dividend investment. It has only been paying out dividend for the past one year. Generally, the rule of thumb for determining whether a stock is a reliable dividend payer is that it should be consistently paying dividends for the past 10 years or more. Clearly there’s a long road ahead before we can ascertain whether PILR one as a stable dividend player. Relative to peers, Pacific Industrial & Logistics REIT produces a yield of 5.04%, which is high for equity real estate investment trusts (reits) stocks.
What this means for you:
Are you a shareholder? If PILR is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be beneficial exploring other income stocks as alternatives to PILR or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.