Why UBM Development AG (VIE:UBS) Is A Dividend Rockstar

Over the past 10 years UBM Development AG (VIE:UBS) has returned an average of 4.00% per year from dividend payouts. The company is currently worth €310.10m, and now yields roughly 4.84%. Should it have a place in your portfolio? Let’s take a look at UBM Development in more detail. See our latest analysis for UBM Development

5 questions I ask before picking a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• 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?

• 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?

WBAG:UBS Historical Dividend Yield June 22nd 18

How does UBM Development fare?

The company currently pays out 38.95% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect UBS’s payout to increase to 45.24% of its earnings, which leads to a dividend yield of 5.41%. However, EPS is forecasted to fall to €5 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.

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. UBS has increased its DPS from €0.55 to €2 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes UBS a true dividend rockstar.

Relative to peers, UBM Development produces a yield of 4.84%, which is high for Real Estate stocks.

Next Steps:

Considering the dividend attributes we analyzed above, UBM Development is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three fundamental aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for UBS’s future growth? Take a look at our free research report of analyst consensus for UBS’s outlook.

2. Valuation: What is UBS 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 UBS is currently mispriced by the market.

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.