Yahoo Finance Deutsche EuroShop AG (ETR:DEQ): Ex-Dividend Is In 2 Days, Should You Buy?
Have you been keeping an eye on Deutsche EuroShop AG’s (ETR:DEQ) upcoming dividend of €1.45 per share payable on the 03 July 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 29 June 2018. Is this future income a persuasive enough catalyst for investors to think about Deutsche EuroShop 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. Check out our latest analysis for Deutsche EuroShop
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically:
It is paying an annual yield above 75% of dividend payers
It has paid dividend every year without dramatically reducing payout in the past
Its dividend per share amount has increased over the past
It can afford to pay the current rate of dividends from its earnings
It has the ability to keep paying its dividends going forward
High Yield And Dependable
The company’s dividend yield stands at 4.60%, which is high for Real Estate stocks. But the real reason Deutsche EuroShop stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. DEQ has increased its DPS from €1.05 to €1.45 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
The company currently pays out 63.33% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect DEQ’s payout to increase to 73.14% of its earnings, which leads to a dividend yield of 4.92%. However, EPS is forecasted to fall to €2.12 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
Next Steps:
There aren’t many other stocks out there with the same track record as Deutsche EuroShop, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given 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. Below, I’ve compiled three fundamental factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for DEQ’s future growth? Take a look at our free research report of analyst consensus for DEQ’s outlook.
Valuation: What is DEQ 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 DEQ is currently mispriced by the market.
Other Dividend Rockstars: Are there strong dividend payers with better 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.
