On the 16 January 2018, Investors Real Estate Trust (NYSE:IRET) will be paying shareholders an upcoming dividend amount of $0.07 per share. However, investors must have bought the company’s stock before 29 December 2017 in order to qualify for the payment. That means you have only 3 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Investors Real Estate Trust’s latest financial data to analyse its dividend attributes. Check out our latest analysis for Investors Real Estate Trust
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
- Is it paying an annual yield above 75% of dividend payers?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has it increased its dividend per share amount 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 Investors Real Estate Trust pass our checks?
Investors Real Estate Trust has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings. 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. Not only have dividend payouts from Investors Real Estate 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, Investors Real Estate Trust produces a yield of 4.93%, which is high for reits stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in Investors Real Estate Trust right now, in terms of its dividend attributes. It may be beneficial exploring other income stocks as alternatives to Investors Real Estate Trust or even look at high-growth stocks to supplement your steady income stocks. I encourage you to continue your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? After digging a little deeper into Investors Real Estate Trust’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Check our latest free fundmental analysis to explore other aspects of Investors Real Estate Trust.
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