Cousins Properties Inc's Dividend Analysis
Assessing the Dividend Profile of Cousins Properties Inc
Cousins Properties Inc (NYSE:CUZ) recently announced a dividend of $0.32 per share, payable on 2024-01-16, with the ex-dividend date set for 2024-01-03. 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 Cousins Properties Inc's dividend performance and assess its sustainability.
What Does Cousins Properties Inc Do?
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Cousins Properties Inc is a real estate investment trust principally involved in the ownership, management, and development of properties in the Southern United States. Cousins Properties' real estate portfolio primarily comprises offices and mixed-use developments that encompass both apartment and retail space. Offices make up the vast majority of the portfolio in terms of total square footage. Cousins' assets are mainly located in Texas and Georgia, with North Carolina also playing host to a smaller amount of rental space. The company derives nearly all of its revenue in the form of rental income from its properties, most of which comes from its office locations. A diverse set of tenants in the cities of Houston and Atlanta represent the company's major markets.
A Glimpse at Cousins Properties Inc's Dividend History
Cousins Properties Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cousins Properties Inc's Dividend Yield and Growth
As of today, Cousins Properties Inc currently has a 12-month trailing dividend yield of 5.26% and a 12-month forward dividend yield of 5.26%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, Cousins Properties Inc's annual dividend growth rate was 3.30%. Extended to a five-year horizon, this rate increased to 5.90% per year. And over the past decade, Cousins Properties Inc's annual dividends per share growth rate stands at 4.40%.
Based on Cousins Properties Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cousins Properties Inc stock as of today is approximately 7.01%.
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, Cousins Properties Inc's dividend payout ratio is 2.21, which may suggest that the company's dividend may not be sustainable.
Cousins Properties Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cousins Properties Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each 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. Cousins Properties Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its 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, Cousins Properties Inc's earnings increased by approximately -1.20% per year on average, a rate that outperforms approximately 44.17% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -9.10%, which outperforms approximately 22.64% of global competitors.
Next Steps
In conclusion, Cousins Properties Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics present a mixed picture for investors. While the company's consistent dividend history and yield on cost are attractive, the sustainability of these dividends could be a concern given the current payout ratio. The profitability rank indicates a strong position, yet the negative EPS growth rate and EBITDA growth rate may raise questions about future growth. As a value investor, it is essential to weigh these factors carefully before making any investment decisions. Will Cousins Properties Inc continue to provide a stable income stream for its shareholders, or do the growth metrics signal potential challenges ahead? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find more opportunities.
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.
