Decoding Armada Hoffler Properties Inc's Dividend Performance and Sustainability
An In-Depth Analysis of Dividend History, Yield, Growth, and Future Prospects
Armada Hoffler Properties Inc(NYSE:AHH) recently announced a dividend of $0.2 per share, payable on 2023-10-05, with the ex-dividend date set for 2023-09-26. 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 deep dive into Armada Hoffler Properties Inc's dividend performance and assess its sustainability.
Understanding Armada Hoffler Properties Inc
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Armada Hoffler Properties Inc is a real estate company. It engages in developing, building, owning and managing high-quality, institutional-grade office, retail, and multifamily properties in various markets throughout the Mid-Atlantic and Southeastern United States. The company's operating segment includes office real estate, retail real estate, multifamily residential real estate, and general contracting and real estate services. It generates maximum revenue from the general contracting and real estate services segment.
Armada Hoffler Properties Inc's Dividend History
Armada Hoffler Properties Inc has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Armada Hoffler Properties Inc's Dividend Yield and Growth
As of today, Armada Hoffler Properties Inc currently has a 12-month trailing dividend yield of 7.14% and a 12-month forward dividend yield of 7.28%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Armada Hoffler Properties Inc's annual dividend growth rate was -5.00%. Extended to a five-year horizon, this rate increased to -4.40% per year.
Based on Armada Hoffler Properties Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Armada Hoffler Properties Inc stock as of today is approximately 5.70%.
Is Armada Hoffler Properties Inc's Dividend Sustainable?
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 2023-06-30, Armada Hoffler Properties Inc's dividend payout ratio is 1.13, which may suggest that the company's dividend may not be sustainable.
Armada Hoffler Properties Inc's profitability rank of 7 out of 10 as of 2023-06-30, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Armada Hoffler Properties Inc's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Armada Hoffler Properties Inc'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 Armada Hoffler Properties Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Armada Hoffler Properties Inc's revenue has increased by approximately 11.60% per year on average, a rate that outperforms approximately 86.03% 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, Armada Hoffler Properties Inc's earnings increased by approximately 31.90% per year on average, a rate that outperforms approximately 79.42% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.40%, outperforms approximately 44.83% of global competitors.
Concluding Thoughts
While Armada Hoffler Properties Inc's dividend payout ratio may raise concerns about the sustainability of its dividends, the company's robust profitability, strong revenue model, and good growth metrics indicate a promising outlook. Investors should continue to monitor these factors closely to make informed decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
