1 Days Left To Cash In On Owens Realty Mortgage Inc (NYSEMKT:ORM) Dividend, Should Investors Buy?
Have you been keeping an eye on Owens Realty Mortgage Inc’s (NYSEMKT:ORM) upcoming dividend of US$0.20 per share payable on the 13 July 2018? Then you only have 1 days left before the stock starts trading ex-dividend on the 28 June 2018. Is this future income a persuasive enough catalyst for investors to think about Owens Realty Mortgage as an investment today? Below, 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 Owens Realty Mortgage
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Is is able to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
How does Owens Realty Mortgage fare?
Owens Realty Mortgage has a trailing twelve-month payout ratio of 50.70%, 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. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
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. The reality is that it is too early to consider Owens Realty Mortgage as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Compared to its peers, Owens Realty Mortgage generates a yield of 4.73%, which is on the low-side for Mortgage REITs stocks.
Next Steps:
Whilst there are few things you may like about Owens Realty Mortgage from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. 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. Below, I’ve compiled three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for ORM’s future growth? Take a look at our free research report of analyst consensus for ORM’s outlook.
Historical Performance: What has ORM’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.
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.
