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Is Empire State Realty Trust Inc (NYSE:ESRT) A Strong Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. In the past 4 years Empire State Realty Trust Inc (NYSE:ESRT) has returned an average of 2.00% per year to investors in the form of dividend payouts. Should it have a place in your portfolio? Let’s take a look at Empire State Realty Trust in more detail. Check out our latest analysis for Empire State Realty Trust

5 checks you should do on a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Is it paying an annual yield above 75% of dividend payers?

  • Does it consistently pay out dividends without missing a payment of significantly cutting payout?

  • Has the amount of dividend per share grown over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will it have the ability to keep paying its dividends going forward?

NYSE:ESRT Historical Dividend Yield Mar 26th 18
NYSE:ESRT Historical Dividend Yield Mar 26th 18

How well does Empire State Realty Trust fit our criteria?

REITs are a special-case dividend payer. This is because a high percentage of their earnings are required to be paid out as dividends. Empire State Realty Trust has a trailing twelve-month payout ratio of 106.24%, meaning that a portion of dividend payments are funded by retained earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view Empire State Realty Trust as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Empire State Realty Trust has a yield of 2.57%, which is on the low-side for REITs stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Empire State Realty Trust for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ESRT’s future growth? Take a look at our free research report of analyst consensus for ESRT’s outlook.

  2. Valuation: What is ESRT worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether ESRT is currently mispriced by the market.

  3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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