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2 Days Left To Charter Hall Retail Real Estate Investment Trust (ASX:CQR)’s Ex-Dividend Date, Is It Worth Buying?

Investors who want to cash in on Charter Hall Retail Real Estate Investment Trust’s (ASX:CQR) upcoming dividend of AU$0.14 per share have only 2 days left to buy the shares before its ex-dividend date, 28 June 2018, in time for dividends payable on the 31 August 2018. Should you diversify into Charter Hall Retail Real Estate Investment Trust 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. Check out our latest analysis for Charter Hall Retail Real Estate Investment Trust

5 checks you should use to assess a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

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  • Is its annual yield among the top 25% of dividend-paying companies?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has it increased its dividend per share amount over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will it be able to continue to payout at the current rate in the future?

ASX:CQR Historical Dividend Yield June 25th 18
ASX:CQR Historical Dividend Yield June 25th 18

How well does Charter Hall Retail Real Estate Investment Trust fit our criteria?

The company currently pays out 74.09% of its earnings as a dividend, according to its trailing twelve-month data, which is rather low compared to other REITs. Generally, REITs are expected to pay out the majority of its earnings to provide a regular income stream for their investors. In the near future, analysts are predicting a higher payout ratio of 92.43%, leading to a dividend yield of around 6.57%. However, EPS is forecasted to fall to A$0.30 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. This also brings about uncertainty around the sustainability of the payout ratio.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Not only have dividend payouts from Charter Hall Retail Real Estate Investment Trust fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends.

Compared to its peers, Charter Hall Retail Real Estate Investment Trust produces a yield of 6.48%, which is high for REITs stocks.

Next Steps:

Keeping in mind the dividend characteristics above, Charter Hall Retail Real Estate Investment Trust is definitely worth considering for investors looking to build a dedicated income portfolio. 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 key factors you should further research:

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

  2. Valuation: What is CQR 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 CQR 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 pass 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.