On the 14 December 2017, Cross Timbers Royalty Trust (NYSE:CRT) will be paying shareholders an upcoming dividend amount of $0.09 per share. However, investors must have bought the company’s stock before 29 November 2017 in order to qualify for the payment. That means you have only 4 days left! Should you diversify into CRT 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. Check out our latest analysis for Cross Timbers Royalty Trust
5 checks you should use to assess a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
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Does it pay an annual yield higher than 75% 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 dividend per share amount increased 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?
How does Cross Timbers Royalty Trust fare?
Cross Timbers Royalty Trust has a payout ratio of 100.00%, which means that the dividend is not well-covered by its 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. Dividend payments from Cross Timbers Royalty Trust have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. In terms of its peers, Cross Timbers Royalty Trust produces a yield of 7.25%, which is high for oil, gas and consumable fuels stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in CRT right now, in terms of its dividend attributes. It may be beneficial exploring other income stocks as alternatives to CRT or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue 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.
Are you a potential investor? Now you know to keep in mind the reason why investors should be careful investing in CRT for the dividend. But if you are not exclusively a dividend investor, CRT could still be an interesting investment opportunity. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Check our latest free fundmental analysis to explore other aspects of CRT.
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.