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Is Elysee Development Corp (CVE:ELC) A Good Choice For Dividend Investors?

Terrence Jolly

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Elysee Development Corp (TSXV:ELC) has returned to shareholders over the past 2 years, an average dividend yield of 7.00% annually. Let’s dig deeper into whether Elysee Development should have a place in your portfolio. View our latest analysis for Elysee Development

Here’s how I find good dividend stocks

If you are a dividend investor, you should always assess these five key metrics:

  • Is its annual yield among the top 25% of dividend-paying companies?
  • Has it paid dividend every year without dramatically reducing payout in the past?
  • Has the amount of dividend per share grown over the past?
  • Is it 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?
TSXV:ELC Historical Dividend Yield Feb 20th 18

How does Elysee Development fare?

The current trailing twelve-month payout ratio for the stock is 67.36%, meaning the dividend is sufficiently covered by earnings. 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. 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. The reality is that it is too early to consider Elysee Development as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Elysee Development has a yield of 8.11%, which is high for Capital Markets stocks.

Next Steps:

If Elysee Development is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three key factors you should further examine:


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.