Does GDI Property Group (ASX:GDI) Have A Place In Your Portfolio?
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. GDI Property Group (ASX:GDI) has returned to shareholders over the past 4 years, an average dividend yield of 7.00% annually. Should it have a place in your portfolio? Let’s take a look at GDI Property Group in more detail. Check out our latest analysis for GDI Property Group
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
Does GDI Property Group pass our checks?
The current payout ratio for GDI is negative, which means that it is loss-making, and paying its dividend from its retained earnings. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view GDI Property Group as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, GDI Property Group produces a yield of 6.30%, which is high for REITs stocks.
Next Steps:
Taking all the above into account, GDI Property Group is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. 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, 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 fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for GDI’s future growth? Take a look at our free research report of analyst consensus for GDI’s outlook.
Valuation: What is GDI 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 GDI 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.
