Mon, Jan 26, 2015, 7:42 AM EST - U.S. Markets open in 1 hr 48 mins

Recent

% | $
Quotes you view appear here for quick access.

Highwoods Properties Inc. Message Board

  • mysportcraft mysportcraft Mar 24, 2011 11:19 AM Flag

    Earnings vs. Payout ????

    Im new.
    My question is this: If a company only makes .86 cents per share,.....and pays out 1.70 in dividends a year....

    How long can that stay-in-place.??

    How can a company Pay-Out so much $$, when their earnings are nowhere near the payout amounts.??

    (Yeah, they might be able to Borrow some money to float the dividend for awhile,.... but that doesn't seem like a bright idea.)

    Would someone explan to me how HIW keeps paying out such a large dividend compared to their earnings.??
    Thanks

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Reit's have lots of real estate depreciation which is a non cash reduction of earnings per share.

      When the depreciation is added back to earnings it's called funds from operations or free cash flow.

      As long a free cash flow exceeds the dividend, which it does, the company can sustain the payout.

 
HIW
47.48-0.56(-1.17%)Jan 23 4:05 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.