Yahoo Finance Is Osisko Gold Royalties Ltd (TSE:OR) A Strong Dividend Stock?
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A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. Osisko Gold Royalties Ltd (TSE:OR) has recently paid dividends to shareholders, and currently yields 1.4%. Let’s dig deeper into whether Osisko Gold Royalties should have a place in your portfolio.
See our latest analysis for Osisko Gold Royalties
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How does Osisko Gold Royalties fare?
Osisko Gold Royalties has a negative payout ratio, which is usually not ideal.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality is that it is too early to consider Osisko Gold Royalties as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Compared to its peers, Osisko Gold Royalties produces a yield of 1.4%, which is high for Metals and Mining stocks but still below the low risk savings rate.
Next Steps:
After digging a little deeper into Osisko Gold Royalties’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three pertinent aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for OR’s future growth? Take a look at our free research report of analyst consensus for OR’s outlook.
Valuation: What is OR 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 OR is currently mispriced by the market.
Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
