Yahoo Finance Charter Hall Group (ASX:CHC): What You Have To Know Before Buying For The Upcoming Dividend
On the 31 August 2018, Charter Hall Group (ASX:CHC) will be paying shareholders an upcoming dividend amount of AU$0.16 per share. However, investors must have bought the company’s stock before 28 June 2018 in order to qualify for the payment. That means you have only 2 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Charter Hall Group’s latest financial data to analyse its dividend attributes. Check out our latest analysis for Charter Hall Group
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share amount increased over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
Does Charter Hall Group pass our checks?
The current trailing twelve-month payout ratio for the stock is 68.08%, 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 81.24%, leading to a dividend yield of around 5.29%. However, EPS is forecasted to fall to A$0.43 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Not only have dividend payouts from Charter Hall Group 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.
Relative to peers, Charter Hall Group has a yield of 4.91%, which is on the low-side for REITs stocks.
Next Steps:
If you are building an income portfolio, then Charter Hall Group is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CHC’s future growth? Take a look at our free research report of analyst consensus for CHC’s outlook.
Valuation: What is CHC 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 CHC is currently mispriced by the market.
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.
