RioCan Real Estate Investment Trust (TSE:REI.UN) Is A Real Dividend Rock Star – Here Is Why
Over the past 10 years RioCan Real Estate Investment Trust (TSX:REI.UN) has grown its dividend payouts from CA$1.35 to CA$1.44. With a market cap of CA$7.72B, RioCan Real Estate Investment Trust pays out 65.38% of its earnings, leading to a 6.04% yield. Let me elaborate on you why the stock stands out for income investors like myself. See our latest analysis for RioCan Real Estate Investment Trust
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It can afford to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future
High Yield And Dependable
RioCan Real Estate Investment Trust’s dividend yield stands at 6.04%, which is high for REITs stocks. But the real reason RioCan Real Estate Investment Trust stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of REI.UN it has increased its DPS from CA$1.35 to CA$1.44 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. The company currently pays out 65.38% of its earnings as a dividend, according to its trailing twelve-month data, 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 84.01%, leading to a dividend yield of 6.05%.
Next Steps:
With RioCan Real Estate Investment Trust producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. However, given 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. Below, I’ve compiled three important aspects you should further research:
Valuation: What is REI.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 REI.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 RioCan Real Estate Investment Trust’s board and the CEO’s back ground.
Other Dividend Rockstars: Are there strong dividend payers with better 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.
