could someone out there with more knowledge than I please explain how this company can pay a dividend which is greater than its profit?? do you expect this 7% plus dividend to continue indefinitely? thank you
Dividends paid by REITS and MLP are paid from cash flow, not reported earnings. Non cash items such as depreciation are deducted from cash flow when caculating reported earnings. So the amount of cash available to pay dividends can be much higher than reported earnings.
I should have added that I'm here because I hope the dividend grows as the company grows. If you check the profile you'll see they have 15 m available for the common shares which is about 4m more than they need for a dividend of .73 x 8.52 m shares outstanding. I am not an accounntant so I could be missing something here for another poster to expand on.