Only 2 Days Left To Colony NorthStar Credit Real Estate Inc (NYSE:CLNC)’s Ex-Dividend Date, Should You Buy?
Important news for shareholders and potential investors in Colony NorthStar Credit Real Estate Inc (NYSE:CLNC): The dividend payment of US$0.14 per share will be distributed into shareholder on 10 July 2018, and the stock will begin trading ex-dividend at an earlier date, 28 June 2018. Is this future income a persuasive enough catalyst for investors to think about Colony NorthStar Credit Real Estate as an investment today? Below, 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 Colony NorthStar Credit Real Estate
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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 the amount of dividend per share grown over the past?
Is is able to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
Does Colony NorthStar Credit Real Estate pass our checks?
The current trailing twelve-month payout ratio for the stock is 68.18%, which is rather low compared to other REITs. Generally, REITs are expected to pay out the majority of its earnings to provide a regular income stream for their investors. 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.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Colony NorthStar Credit Real Estate as a dividend investment. It has only been paying out dividend for the past one year. Generally, the rule of thumb for determining whether a stock is a reliable dividend payer is that it should be consistently paying dividends for the past 10 years or more. Clearly there’s a long road ahead before we can ascertain whether CLNC one as a stable dividend player.
Compared to its peers, Colony NorthStar Credit Real Estate has a yield of 8.80%, which is on the low-side for Mortgage REITs stocks.
Next Steps:
If you are building an income portfolio, then Colony NorthStar Credit Real Estate is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, the stock could still offer 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. There are three important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for CLNC’s future growth? Take a look at our free research report of analyst consensus for CLNC’s outlook.
Historical Performance: What has CLNC’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.
