Important news for shareholders and potential investors in Ediston Property Investment Company plc (LSE:EPIC): The dividend payment of £0 per share will be distributed into shareholder on 31 January 2018, and the stock will begin trading ex-dividend at an earlier date, 18 January 2018. Is this future income a persuasive enough catalyst for investors to think about Ediston Property Investment Company as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Ediston Property Investment Company
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is it the top 25% annual dividend yield payer?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has it increased its dividend per share amount over the past?
- Does earnings amply cover its dividend payments?
- Will it have the ability to keep paying its dividends going forward?
How does Ediston Property Investment Company fare?
The company currently pays out 69.04% of its earnings as a dividend, meaning the dividend is sufficiently covered by earnings. 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’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider Ediston Property Investment Company as a dividend investment. It has only been consistently paying dividends for 3 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Ediston Property Investment Company has a yield of 5.02%, which is high for reits stocks.
What this means for you:
Are you a shareholder? Whilst there are few things you may like about Ediston Property Investment Company from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. It may be worth exploring other dividend stocks as alternatives to Ediston Property Investment Company or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking all the above into account, Ediston Property Investment Company is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Dig deeping in our latest free fundmental analysis to explore other aspects of Ediston Property Investment Company.
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