Should Income Investors Buy Reis Inc (NASDAQ:REIS) Before Its Ex-Dividend?
Have you been keeping an eye on Reis Inc’s (NASDAQ:REIS) upcoming dividend of $0.19 per share payable on the 14 March 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 06 March 2018. Should you diversify into Reis 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. See our latest analysis for Reis
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it paying an annual yield above 75% of dividend payers?
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 its earnings sufficient to payout dividend at the current rate?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Reis fit our criteria?
The company currently pays out more than double of its earnings as a dividend, according to its trailing trailing twelve-month data, meaning that the dividend is predominantly funded by retained earnings. Going forward, analysts expect REIS’s payout to fall to 160.56% of its earnings, which leads to a dividend yield of around 3.46%. Moreover, EPS should increase to $0.33, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. 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 Reis 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, Reis has a yield of 3.87%, which is high for Internet stocks.
Next Steps:
After digging a little deeper into Reis’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three relevant factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for REIS’s future growth? Take a look at our free research report of analyst consensus for REIS’s outlook.
Historical Performance: What has REIS’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.
