If you are interested in cashing in on CoreSite Realty Corporation’s (NYSE:COR) upcoming dividend of US$1.03 per share, you only have 2 days left to buy the shares before its ex-dividend date, 28 June 2018, in time for dividends payable on the 16 July 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding CoreSite Realty can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View out our latest analysis for CoreSite Realty
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
- 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 dividend per share risen in the past couple of years?
- Is its earnings sufficient to payout dividend at the current rate?
- Will it have the ability to keep paying its dividends going forward?
Does CoreSite Realty 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 current trailing twelve-month payout ratio for COR is 191.27%, meaning that a portion of dividend payments are funded by retained earnings. Going forward, analysts expect COR’s payout to reduce to 159.08% of its earnings, which leads to a dividend yield of around 4.18%. However, EPS should increase to $2.31, 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 CoreSite Realty as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
In terms of its peers, CoreSite Realty generates a yield of 3.78%, which is on the low-side for REITs stocks.
Now you know to keep in mind the reason why investors should be careful investing in CoreSite Realty for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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 important factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for COR’s future growth? Take a look at our free research report of analyst consensus for COR’s outlook.
- Valuation: What is COR 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 COR 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.