Important news for shareholders and potential investors in Elanor Investors Group (ASX:ENN): The dividend payment of A$0.07 per share will be distributed into shareholder on 02 March 2018, and the stock will begin trading ex-dividend at an earlier date, 28 December 2017. Should you diversify into Elanor Investors Group 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. See our latest analysis for Elanor Investors Group
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
-
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 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 Elanor Investors Group fare?
Elanor Investors Group has a payout ratio of more than 200% of earnings, which suggests that the dividend is not well-covered by earnings by any means. However, going forward, analysts expect ENN’s payout to fall into a more sustainable range of 90.00% of its earnings, which leads to a dividend yield of around 7.38%. Moreover, EPS should increase to A$0.3, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider Elanor Investors Group as a dividend investment. It has only been consistently paying dividends for 3 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Elanor Investors Group produces a yield of 5.97%, which is high for hospitality stocks.
What this means for you:
Are you a shareholder? You may be wondering why Elanor Investors Group is paying out dividends at all, instead of re-investing into the business to generate higher cash flows in the future. It may be worth exploring other income stocks as alternatives to Elanor Investors Group or even look at high-growth stocks to supplement your steady income stocks. I recommend continuing 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.