British Land Co PLC's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
British Land Co PLC (BTLCY) recently announced a dividend of $0.15 per share, payable on 2024-01-16, with the ex-dividend date set for 2023-11-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into British Land Co PLC's dividend performance and assess its sustainability.
What Does British Land Co PLC Do?
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British Land Co PLC is a real estate investment trust that owns, manages, and develops a portfolio of properties across the United Kingdom. The REIT categorizes its portfolio into three types: Offices, Retail, and Canada Water. The retail and leisure portfolio, which accounts for approximately half of total assets, consists of retail stores, shopping centers, and leisure venues. The offices and residential portfolio focuses on offices and residential buildings in London and the West End region and also accounts for approximately half of the entire portfolio. Development, the remaining small portion of portfolio value, represents British Land's London-based development projects.
A Glimpse at British Land Co PLC's Dividend History
British Land Co PLC has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down British Land Co PLC's Dividend Yield and Growth
As of today, British Land Co PLC currently has a 12-month trailing dividend yield of 6.24% and a 12-month forward dividend yield of 6.51%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, British Land Co PLC's annual dividend growth rate was -0.70%. Extended to a five-year horizon, this rate decreased to -11.00% per year. And over the past decade, British Land Co PLC's annual dividends per share growth rate stands at -5.60%.
Based on British Land Co PLC's dividend yield and five-year growth rate, the 5-year yield on cost of British Land Co PLC stock as of today is approximately 3.48%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, British Land Co PLC's dividend payout ratio is 0.00.
British Land Co PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks British Land Co PLC's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. British Land Co PLC's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and British Land Co PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. British Land Co PLC's revenue has increased by approximately -11.70% per year on average, a rate that underperforms than approximately 87.52% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, British Land Co PLC's earnings increased by approximately -4.70% per year on average, a rate that underperforms than approximately 62.79% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -7.50%, which underperforms than approximately 74.3% of global competitors.
Next Steps
In conclusion, while British Land Co PLC presents a high dividend yield, the company's historical dividend growth rates and growth metrics indicate challenges ahead. The payout ratio, currently at 0.00, and profitability rank of 6 suggest that dividends could be maintained; however, investors should be cautious about the declining growth rates and underperformance in revenue and earnings growth relative to peers. It is essential for investors to consider these factors, along with broader market and industry trends, when evaluating the future prospects of British Land Co PLC's dividend payments.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
