Centuria Capital Group (ASX:CNI): What You Have To Know Before Buying For The Upcoming Dividend

Important news for shareholders and potential investors in Centuria Capital Group (ASX:CNI): The dividend payment of AU$0.041 per share will be distributed into shareholder on 27 July 2018, and the stock will begin trading ex-dividend at an earlier date, 28 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Centuria Capital Group’s latest financial data to analyse its dividend characteristics. See our latest analysis for Centuria Capital Group

How I analyze a dividend stock

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

• Is it paying an annual yield above 75% of dividend payers?

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

ASX:CNI Historical Dividend Yield June 25th 18

How well does Centuria Capital Group fit our criteria?

Centuria Capital Group has a trailing twelve-month payout ratio of 105.60%, meaning the dividend is not sufficiently covered by its earnings. In the near future, analysts are predicting a more sensible payout ratio of 73.41%, leading to a dividend yield of 5.97%. Furthermore, EPS should increase to A$0.15, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

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. Dividend payments from Centuria Capital Group have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends.

Compared to its peers, Centuria Capital Group generates a yield of 5.73%, which is high for Capital Markets stocks.

Next Steps:

Taking all the above into account, Centuria Capital Group is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. 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. There are three key aspects you should further examine:

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

2. Historical Performance: What has CNI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. 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.