Have you been waiting for Gladstone Commercial Corporation’s (NASDAQ:GOOD) upcoming dividend of $0.13 per share? Then you only have to wait 3 more days before the stock pays out on 29 December 2017, and starts trading ex-dividend on the 18 December 2017. What does this mean for current shareholders and potential investors? Below, I will explain how holding Gladstone Commercial can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Gladstone Commercial
5 questions I ask before picking 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?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has it increased its dividend per share amount 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 well does Gladstone Commercial fit our criteria?
Gladstone Commercial has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings. 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. GOOD has increased its DPS from $1.44 to $1.5 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes GOOD a true dividend rockstar. Compared to its peers, Gladstone Commercial produces a yield of 6.92%, which is high for reits stocks.
What this means for you:
Are you a shareholder? Investors of Gladstone Commercial can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Gladstone Commercial is one worth keeping around in your income portfolio. However, depending on your portfolio composition, it may be beneficial exploring other income stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? With this in mind, I definitely rank Gladstone Commercial as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. No matter how much of a cash cow Gladstone Commercial is, it is not worth an infinite price. Is Gladstone Commercial still a bargain? Dig deeper in our latest free analysis to find out!
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.