If you are interested in cashing in on Gladstone Commercial Corporation’s (NASDAQ:GOOD) upcoming dividend of $0.13 per share, you only have 3 days left to buy the shares before its ex-dividend date, 17 November 2017, in time for dividends payable on the 30 November 2017. Should you diversify into GOOD and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Gladstone Commercial
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is their annual yield among the top 25% of dividend payers?
- 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?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Gladstone Commercial fare?
Gladstone Commercial has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. GOOD has increased its DPS from $1.44 to $1.5 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes GOOD a true dividend rockstar. Relative to peers, Gladstone Commercial produces a yield of 6.68%, which is high for equity real estate investment trusts (reits) stocks.
What this means for you:
Are you a shareholder? If GOOD is in your portfolio for cash-generating reasons, there may be better alternatives out there, preferably ones with a more robust and increasing payout over time. It may be beneficial exploring other dividend stocks as alternatives to GOOD or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? If we were to look at Gladstone Commercial from a perspective of a dividend stock, there isn’t much to like. But if you are not exclusively a dividend investor, GOOD could still be an interesting investment opportunity. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Dig deeper in our latest free fundmental analysis to explore other aspects of GOOD.
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.