Over the past 10 years Crombie Real Estate Investment Trust (TSX:CRR.UN) has returned an average of 7.00% per year from dividend payouts. The company currently pays out a dividend yield of 7.21% to shareholders, making it a relatively attractive dividend stock. Does Crombie Real Estate Investment Trust tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. Check out our latest analysis for Crombie Real Estate Investment Trust

How I analyze a dividend stock

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 the amount of dividend per share grown over the past?

• Does earnings amply cover its dividend payments?

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

How well does Crombie Real Estate Investment Trust fit our criteria?

Crombie Real Estate Investment Trust has a trailing twelve-month payout ratio of 81.29%, 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. Going forward, analysts expect CRR.UN’s payout to increase to 148.33% of its earnings, which leads to a dividend yield of around 7.21%.

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. CRR.UN has increased its DPS from CA$0.85 to CA$0.89 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes CRR.UN a true dividend rockstar. Relative to peers, Crombie Real Estate Investment Trust has a yield of 7.21%, which is high for REITs stocks.

Next Steps:

With this in mind, I definitely rank Crombie Real Estate Investment Trust as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three fundamental aspects you should look at:

1. Valuation: What is CRR.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 CRR.UN is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Crombie Real Estate Investment Trust’s board and the CEO’s back ground.

3. Other 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.