Attention dividend hunters! Urstadt Biddle Properties Inc (NYSE:UBA) will be distributing its dividend of $0.27 per share on the 19 January 2018, and will start trading ex-dividend in 3 days time on the 04 January 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Urstadt Biddle Properties’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Urstadt Biddle Properties
5 questions to ask before buying a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
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Is it paying an annual yield above 75% of dividend payers?
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Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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Has dividend per share risen in the past couple of years?
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Can it afford 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 Urstadt Biddle Properties fare?
The current payout ratio for UBA is 120.48%, which means that the dividend is not well-covered by its earnings. In the near future, analysts are predicting a higher payout ratio of 138.97%, leading to a dividend yield of 4.88%. Furthermore, EPS should increase to $0.89. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors 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. In the case of UBA it has increased its DPS from $0.95 to $1.08 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. Relative to peers, Urstadt Biddle Properties generates a yield of 4.97%, which is high for reits stocks.
What this means for you:
Are you a shareholder? Investors of Urstadt Biddle Properties can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Urstadt Biddle Properties is one worth keeping around in your income portfolio. But, depending on your current portfolio, it may be valuable exploring other dividend stocks to increase diversification, 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.