Pure Multi-Family REIT LP (CVE:RUF.UN): What You Have To Know Before Buying For The Upcoming Dividend
Have you been keeping an eye on Pure Multi-Family REIT LP’s (TSXV:RUF.UN) upcoming dividend of $0.03 per share payable on the 15 May 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 27 April 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Pure Multi-Family REIT’s latest financial data to analyse its dividend characteristics. View our latest analysis for Pure Multi-Family REIT
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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 the company be able to keep paying dividend based on the future earnings growth?
How well does Pure Multi-Family REIT fit our criteria?
Pure Multi-Family REIT has a trailing twelve-month payout ratio of 60.01%, 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. In the near future, analysts are predicting a higher payout ratio of 95.00%, leading to a dividend yield of 5.29%.
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. Unfortunately, it is really too early to view Pure Multi-Family REIT 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, Pure Multi-Family REIT has a yield of 5.17%, which is on the low-side for REITs stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Pure Multi-Family REIT as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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 relevant factors you should further examine:
Valuation: What is RUF.UN 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 RUF.UN is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pure Multi-Family REIT’s board and the CEO’s back ground.
Other 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.
