On the 28 February 2018, Charter Hall Group (ASX:CHC) will be paying shareholders an upcoming dividend amount of A$0.16 per share. However, investors must have bought the company’s stock before 28 December 2017 in order to qualify for the payment. That means you have only 3 days left! Is this future income a persuasive enough catalyst for investors to think about Charter Hall Group as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. View our latest analysis for Charter Hall Group
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Is it paying an annual yield above 75% of dividend payers?
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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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Is is able to pay the current rate of dividends from its earnings?
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Will the company be able to keep paying dividend based on the future earnings growth?
How does Charter Hall Group fare?
Charter Hall Group has a payout ratio of 49.02%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect CHC’s payout to increase to 72.27% of its earnings, which leads to a dividend yield of around 5.46%. However, EPS is forecasted to fall to A$0.4 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. 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 Charter Hall Group 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. Compared to its peers, Charter Hall Group produces a yield of 5.05%, which is high for reits stocks.
What this means for you:
Are you a shareholder? Investors of Charter Hall Group can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Charter Hall Group is one worth keeping around in your income portfolio. But, depending on your current portfolio, it may be valuable exploring other income stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.