Vornado Realty Trust (NYSE:VNO): What You Have To Know Before Buying For The Upcoming Dividend
If you are interested in cashing in on Vornado Realty Trust’s (NYSE:VNO) upcoming dividend of $0.63 per share, you only have 3 days left to buy the shares before its ex-dividend date, 26 January 2018, in time for dividends payable on the 15 February 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Vornado Realty Trust can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for Vornado Realty Trust
Here’s how I find good dividend stocks
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?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Can it afford 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 Vornado Realty Trust pass our checks?
The current payout ratio for the stock is 72.82%, 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 is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Not only have dividend payouts from Vornado Realty Trust fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends. Relative to peers, Vornado Realty Trust has a yield of 3.96%, which is on the low-side for reits stocks.
Next Steps:
If you are building an income portfolio, then Vornado Realty Trust 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three relevant factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for VNO’s future growth? Take a look at our free research report of analyst consensus for VNO’s outlook.
2. Valuation: What is VNO 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 VNO is currently mispriced by the market.
3. 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.
