LONDON, UK / ACCESSWIRE / May 10, 2018 / Active-Investors has a free review on American Campus Communities, Inc. (NYSE: ACC) following the Company's announcement that it will begin trading ex-dividend on May 11, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on May 10, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on ACC:
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On May 02, 2018, American Campus announced that its Board of Directors declared a regular quarterly dividend of $0.46 per share of common stock, payable on May 25, 2018, to shareholders of record at the close of business on May 14, 2018. The declared dividend is a 4.5% increase over the prior quarterly dividend of $0.44 per share of common stock.
"We are pleased to provide a sixth consecutive annual dividend increase for shareholders," said Bill Bayless, American Campus Communities CEO, "The long-term stability of our operating performance has allowed the Board of Directors to maintain or increase the company's dividend throughout the 54 quarters since going public, representing over 36 percent growth in the dividend since 2012."
American Campus' indicated dividend represents a yield of 4.61%, which is substantially higher than the average dividend yield of 3.17% for the Financial sector. The Company has raised dividend for six consecutive years.
American Campus has a dividend payout ratio of 77.6%, which indicates that the Company spends approximately $0.78 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, American Campus is forecasted to report earnings of $0.73 for the upcoming year, as compared to the Company's annualized dividend of $1.84 per share. One of the primary reasons for the difference between earnings and the annualized dividend is that American Campus is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, for the quarter ended March 31, 2018, American Campus reported net income attributable to the Company of $25.9 million, or $0.18 per fully diluted share, versus $34.1 million, or $0.25 per fully diluted share, in Q1 2017.
On the other hand, American Campus reported quarterly FFO-modified of $85.8 million, or $0.62 per fully diluted share, for Q1 2018 versus $83.2 million, or $0.62 per fully diluted share, in Q1 2017. The FFO number indicates that the Company should be able to comfortably cover its dividend payout.
About American Campus Communities, Inc.
American Campus is the largest owner, manager, and developer of high-quality student housing communities in the United States. As of March 31, 2018, the Company owned 171 student housing properties containing approximately 104,800 beds. Including its owned and third-party managed properties, American Campus' total managed portfolio consisted of 207 properties with approximately 134,400 beds.
Stock Performance Snapshot
May 09, 2018 - At Wednesday's closing bell, American Campus Communities' stock slightly dropped 0.15%, ending the trading session at $39.78.
Volume traded for the day: 810.72 thousand shares.
Stock performance in the last month – up 1.20%; and previous three-month period – up 11.49%
After yesterday's close, American Campus Communities' market cap was at $5.44 billion.
Price to Earnings (P/E) ratio was at 98.47.
The stock has a dividend yield of 4.63%.
The stock is part of the Financial sector, categorized under the REIT - Residential industry. This sector was up 1.1% at the end of the session.
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