Empire State Realty Trust Inc's Dividend Analysis
Assessing the Dividend Performance and Sustainability
Empire State Realty Trust Inc (NYSE:ESRT) recently announced a dividend of $0.04 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-12-15. 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 Empire State Realty Trust Inc's dividend performance and assess its sustainability.
What Does Empire State Realty Trust Inc Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Empire State Realty Trust operates as a pure-play greater New York and Manhattan-focused REIT, featuring its landmark Empire State Building office and observation deck. The company owns and operates around 9.4 million square feet of office space, about 80% of which is located in Manhattan.
A Glimpse at Empire State Realty Trust Inc's Dividend History
Empire State Realty Trust 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.
Breaking Down Empire State Realty Trust Inc's Dividend Yield and Growth
As of today, Empire State Realty Trust Inc currently has a 12-month trailing dividend yield of 1.45% and a 12-month forward dividend yield of 1.45%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Empire State Realty Trust Inc's annual dividend growth rate was -30.70%. Extended to a five-year horizon, this rate increased to -25.60% per year. Based on Empire State Realty Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Empire State Realty Trust Inc stock as of today is approximately 0.33%.
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, Empire State Realty Trust Inc's dividend payout ratio is 0.42.
Empire State Realty Trust Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Empire State Realty Trust Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Empire State Realty Trust 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 Empire State Realty Trust Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Empire State Realty Trust Inc's revenue has increased by approximately 3.10% per year on average, a rate that outperforms approximately 60.31% 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, Empire State Realty Trust Inc's earnings increased by approximately -21.40% per year on average, a rate that outperforms approximately 18.3% of global competitors.
Concluding Insights on Empire State Realty Trust Inc's Dividend Profile
Considering Empire State Realty Trust Inc's consistent dividend payments, current yield, and payout ratio, the company presents a profile of dividend sustainability that may appeal to value investors. However, the negative dividend growth rate over the past years raises questions about long-term dividend growth potential. Balancing these elements with the company's solid profitability and growth metrics, investors should weigh the stability of current yield against the prospects for future increases. Will Empire State Realty Trust Inc's strategic positioning in the Manhattan real estate market and its financial health support a return to positive dividend growth? This remains a key consideration for investors evaluating the long-term income potential of Empire State Realty Trust Inc's stock.
GuruFocus Premium users can screen for high-dividend yield stocks using 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.
