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Event Hospitality & Entertainment Limited (ASX:EVT) has pleased shareholders over the past 10 years, paying out an average dividend of 5.00% annually. The company currently pays out a dividend yield of 3.48% to shareholders, making it a relatively attractive dividend stock. Should it have a place in your portfolio? Let’s take a look at Event Hospitality & Entertainment in more detail.

Check out our latest analysis for Event Hospitality & Entertainment

Here’s how I find good dividend stocks

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 risen in the past couple of years?

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

• Will it have the ability to keep paying its dividends going forward?

How does Event Hospitality & Entertainment fare?

Event Hospitality & Entertainment has a trailing twelve-month payout ratio of 70.13%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 70.44%, leading to a dividend yield of 4.01%. Moreover, EPS should increase to A$0.82.

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. In the case of EVT it has increased its DPS from A$0.29 to A$0.52 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.

In terms of its peers, Event Hospitality & Entertainment generates a yield of 3.48%, which is high for Media stocks but still below the market’s top dividend payers.

Next Steps:

Considering the dividend attributes we analyzed above, Event Hospitality & Entertainment is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three pertinent factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for EVT’s future growth? Take a look at our free research report of analyst consensus for EVT’s outlook.

2. Valuation: What is EVT worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether EVT is currently mispriced by the market.

3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.