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Investors who want to cash in on REN - Redes Energéticas Nacionais, SGPS, S.A.'s (ELI:RENE) upcoming dividend of €0.17 per share have only 3 days left to buy the shares before its ex-dividend date, 21 May 2019, in time for dividends payable on the 23 May 2019. What does this mean for current shareholders and potential investors? Below, I will explain how holding REN - Redes Energéticas Nacionais SGPS can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes.

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Check out our latest analysis for REN - Redes Energéticas Nacionais SGPS

Here's how I find good dividend stocks

When researching a dividend stock, I always follow the following screening criteria:

• Does it pay an annual yield higher than 75% of dividend payers?

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

• Has the amount of dividend per share grown over the past?

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

• Will the company be able to keep paying dividend based on the future earnings growth?

How does REN - Redes Energéticas Nacionais SGPS fare?

The current trailing twelve-month payout ratio for RENE is 98%, meaning the dividend is not sufficiently covered by its earnings. Going forward, analysts expect RENE's payout to remain around the same level at 97% of its earnings. Assuming a constant share price, this equates to a dividend yield of 6.6%. Moreover, EPS is forecasted to fall to €0.17 in the upcoming year.

When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.

If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. Unfortunately, it is really too early to view REN - Redes Energéticas Nacionais SGPS as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

In terms of its peers, REN - Redes Energéticas Nacionais SGPS produces a yield of 6.7%, which is high for Integrated Utilities stocks but still below the market's top dividend payers.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in REN - Redes Energéticas Nacionais SGPS for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, 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. I've put together three relevant factors you should look at: