If you are interested in cashing in on Pacific Industrial & Logistics REIT Plc’s (AIM:PILR) upcoming dividend of £0.01 per share, you only have 5 days left to buy the shares before its ex-dividend date, 30 November 2017, in time for dividends payable on the 22 December 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
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
-
Is it the top 25% annual dividend yield payer?
-
Has it paid dividend every year without dramatically reducing payout in the past?
-
Has dividend per share amount increased over the past?
-
Is its earnings sufficient to payout dividend at the current rate?
-
Will it have the ability to keep paying its dividends going forward?
Does Pacific Industrial & Logistics REIT pass our checks?
The company currently pays out 15.57% of its earnings as a dividend, 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. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. 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. In terms of its peers, PILR has 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? Whilst there are few things you may like about Pacific Industrial & Logistics REIT from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. It may be beneficial exploring other income stocks as alternatives to PILR 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.