City Office REIT Inc's Dividend Analysis
Assessing the Sustainability and Growth of City Office REIT Inc's Dividends
City Office REIT Inc (NYSE:CIO) recently announced a dividend of $0.1 per share, payable on 2024-01-24, with the ex-dividend date set for 2024-01-09. 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 City Office REIT Inc's dividend performance and assess its sustainability.
What Does City Office REIT Inc Do?
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City Office REIT Inc is a real estate investment trust. It is focused on acquiring, owning, and operating high-quality office properties located predominantly in Sun Belt markets. The company owns office buildings in the metropolitan areas of Dallas, Denver, Orlando, Phoenix, Portland, Raleigh, San Diego, Seattle, and Tampa.
A Glimpse at City Office REIT Inc's Dividend History
City Office REIT Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down City Office REIT Inc's Dividend Yield and Growth
As of today, City Office REIT Inc currently has a 12-month trailing dividend yield of 9.60% and a 12-month forward dividend yield of 6.40%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, City Office REIT Inc's annual dividend growth rate was -5.20%. Extended to a five-year horizon, this rate increased to -2.90% per year. Based on City Office REIT Inc's dividend yield and five-year growth rate, the 5-year yield on cost of City Office REIT Inc stock as of today is approximately 8.29%.
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, City Office REIT Inc's dividend payout ratio is 0.00.
City Office REIT Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks City Office REIT Inc'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. City Office REIT Inc'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 City Office REIT Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. City Office REIT Inc's revenue has increased by approximately 5.80% per year on average, a rate that outperforms approximately 71.18% of global competitors.
Next Steps
Considering City Office REIT Inc's consistent dividend payments, its historical yield, and the current outlook, investors may find the company an interesting candidate for their income portfolios. Although the dividend growth rate has experienced a decline, the payout ratio and profitability rank suggest a level of resilience. The company's growth metrics, particularly in revenue, reinforce a positive future outlook. Investors should weigh these factors against their investment strategy and risk tolerance. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers valuable tools such as the High Dividend Yield Screener.
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.
