Boston Properties Inc (NYSE:BXP): Ex-Dividend Is In 2 Days, Should You Buy?
Shares of Boston Properties Inc (NYSE:BXP) will begin trading ex-dividend in 2 days. To qualify for the dividend check of US$0.80 per share, investors must have owned the shares prior to 28 June 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Boston Properties’s latest financial data to analyse its dividend attributes. See our latest analysis for Boston Properties
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has the amount of dividend per share grown over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
Does Boston Properties pass our checks?
REITs are a special-case dividend payer. This is because a high percentage of their earnings are required to be paid out as dividends. The company currently pays out 90.14% of its earnings as a dividend, according to its trailing twelve-month data, which is in-line with most other REIT stocks. In the near future, analysts are predicting a higher payout ratio of 137.12%, leading to a dividend yield of 2.79%. However, EPS is forecasted to fall to $2.9 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time.
Compared to its peers, Boston Properties generates a yield of 2.55%, which is on the low-side for REITs stocks.
Next Steps:
If you are building an income portfolio, then Boston Properties 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for BXP’s future growth? Take a look at our free research report of analyst consensus for BXP’s outlook.
Valuation: What is BXP 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 BXP 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.
