Regional REIT Limited (LSE:RGL): Ex-Dividend Is Coming In 3 Days, Should You Buy?

Asher Wright
Updated

Have you been waiting for Regional REIT Limited’s (LSE:RGL) upcoming dividend of £0.02 per share? Then you only have to wait 3 more days before the stock pays out on 22 December 2017, and starts trading ex-dividend on the 23 November 2017. Is this future income a persuasive enough catalyst for investors to think about RGL 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. View our latest analysis for Regional REIT

Here’s how I find good dividend stocks

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Is its annual yield among the top 25% of dividend-paying companies?

  • Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

  • Has the amount of dividend per share grown over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will it be able to continue to payout at the current rate in the future?

LSE:RGL Historical Dividend Yield Nov 20th 17
LSE:RGL Historical Dividend Yield Nov 20th 17

How well does Regional REIT fit our criteria?

Regional REIT has a payout ratio of 92.24%, which means that the dividend is not well-covered by its earnings. Going forward, analysts expect RGL’s payout to remain around the same level at 94.62% of its earnings, which leads to a dividend yield of around 7.71%. Moreover, EPS should increase to £0.13. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. The reality is that it is too early to consider Regional REIT as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, RGL generates a yield of 7.42%, which is high for equity real estate investment trusts (reits) stocks.

What this means for you:

Are you a shareholder?

Are you a shareholder? With Regional REIT producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. However, depending on your portfolio composition, it may be valuable exploring other dividend stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? Considering the dividend attributes we analyzed above, RGL is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. Whether or not you like RGL as a dividend stock, it’s still worth checking the price tag. Can you buy RGL for a great price? Check our latest free analysis to find out!


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.