Canadian Apartment Properties Real Estate Investment Trust's Dividend Analysis
Unpacking the Dividend Prospects of CDPYF
Canadian Apartment Properties Real Estate Investment Trust (CDPYF) recently announced a dividend of $0.12 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-30. 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 Canadian Apartment Properties Real Estate Investment Trust's dividend performance and assess its sustainability.
What Does Canadian Apartment Properties Real Estate Investment Trust Do?
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Canadian Apartment Properties Real Estate Investment Trust, or CAPREIT, is a real estate investment trust primarily engaged in the acquisition and leasing of multiunit residential rental properties located near major urban centers across Canada. The company's real estate portfolio is mainly composed of apartments and townhouses situated near public amenities. Most of CAPREIT's holdings are aimed towards the midtier and luxury markets in terms of demographic segments. The company derives nearly all of its income in the form of rental revenue from leasing its properties to tenants. The majority of this revenue comes from assets located in the Greater Toronto and Greater Montreal regions. The buildings in these areas also contain the majority of CAPREIT's total housing units.
A Glimpse at Canadian Apartment Properties Real Estate Investment Trust's Dividend History
Canadian Apartment Properties Real Estate Investment Trust has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Canadian Apartment Properties Real Estate Investment Trust's Dividend Yield and Growth
As of today, Canadian Apartment Properties Real Estate Investment Trust currently has a 12-month trailing dividend yield of 3.09% and a 12-month forward dividend yield of 3.10%. This suggests an expectation of an increase in dividend payments over the next 12 months.
Over the past three years, Canadian Apartment Properties Real Estate Investment Trust's annual dividend growth rate was 2.00%. Extended to a five-year horizon, this rate increased to 2.50% per year. And over the past decade, Canadian Apartment Properties Real Estate Investment Trust's annual dividends per share growth rate stands at 2.90%.
Based on Canadian Apartment Properties Real Estate Investment Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Canadian Apartment Properties Real Estate Investment Trust stock as of today is approximately 3.50%.
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, Canadian Apartment Properties Real Estate Investment Trust's dividend payout ratio is 0.00.
Canadian Apartment Properties Real Estate Investment Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Canadian Apartment Properties Real Estate Investment Trust's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Canadian Apartment Properties Real Estate Investment Trust's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Canadian Apartment Properties Real Estate Investment Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Canadian Apartment Properties Real Estate Investment Trust's revenue has increased by approximately 5.60% per year on average, a rate that outperforms approximately 71.79% 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, Canadian Apartment Properties Real Estate Investment Trust's earnings increased by approximately 9.00% per year on average, a rate that outperforms approximately 66.73% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 6.40%, which outperforms approximately 65.54% of global competitors, further supports its dividend sustainability.
Engaging Conclusion
With a consistent dividend history, a stable yield, and positive growth metrics, Canadian Apartment Properties Real Estate Investment Trust appears positioned to maintain its dividend payments. The combination of a low payout ratio and strong profitability underscores the trust's capacity to support and potentially increase its dividend distributions in the future. As value investors consider the prospects of CDPYF, the question remains: will the trust's strategic initiatives and market position allow it to continue thriving in a competitive real estate market? Investors looking for income-generating investments may find Canadian Apartment Properties Real Estate Investment Trust an attractive option to explore further.
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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.
