U.S. Markets closed

Why City Office REIT, Inc. (NYSE:CIO) Could Have A Place In Your Portfolio

Isabel Galloway

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

City Office REIT, Inc. (NYSE:CIO) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CIO, it is a highly-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on City Office REIT here.

Undervalued average dividend payer

CIO’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if CIO’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, CIO’s share price is trading below the group’s average. This further reaffirms that CIO is potentially undervalued.

NYSE:CIO Intrinsic Value Export February 14th 19

CIO’s high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

NYSE:CIO Historical Dividend Yield February 14th 19

Next Steps:

For City Office REIT, I’ve compiled three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for CIO’s future growth? Take a look at our free research report of analyst consensus for CIO’s outlook.
  2. Historical Performance: What has CIO’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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CIO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.