Franklin Street Properties Corp's Dividend Analysis
Understanding the Dividend Performance and Sustainability of Franklin Street Properties Corp
Franklin Street Properties Corp (FSP) recently announced a dividend of $0.01 per share, payable on 2023-11-09, with the ex-dividend date set for 2023-10-19. As investors anticipate this forthcoming payment, it's essential to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, this article provides an in-depth analysis of Franklin Street Properties Corp's dividend performance and assesses its sustainability.
About Franklin Street Properties Corp
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Franklin Street Properties Corp is a real estate investment trust. The company's operations encompass rental income from real estate leasing, interest income from secured loans made on office properties, property dispositions, and fee income from asset/property management and development. Franklin Street Properties Corp markets in Atlanta, Dallas, Denver, Houston, and Minneapolis and owns a portfolio of real estate consisting of approximately 32 properties.
Franklin Street Properties Corp's Dividend History
Franklin Street Properties Corp has maintained a consistent dividend payment record since 2005, with dividends currently distributed on a quarterly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Analyzing Franklin Street Properties Corp's Dividend Yield and Growth
As of today, Franklin Street Properties Corp currently has a 12-month trailing dividend yield of 2.34% and a 12-month forward dividend yield of 2.34%, suggesting a steady dividend payment expectation over the next 12 months.
Over the past three years, Franklin Street Properties Corp's annual dividend growth rate was -17.80%. Extended to a five-year horizon, this rate decreased to -19.10% per year. Over the past decade, the company's annual dividends per share growth rate stands at -11.90%.
Based on Franklin Street Properties Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Franklin Street Properties Corp stock as of today is approximately 0.81%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, the company's payout ratio is a crucial factor. 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, Franklin Street Properties Corp's dividend payout ratio is 0.50.
Franklin Street Properties Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Franklin Street Properties Corp's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Future Prospects: Growth Metrics
For the sustainability of dividends, a company must have robust growth metrics. Franklin Street Properties Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Franklin Street Properties Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. However, Franklin Street Properties Corp's revenue has increased by approximately -13.90% per year on average, a rate that underperforms approximately 89.54% 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, Franklin Street Properties Corp's earnings increased by approximately -45.00% per year on average, a rate that underperforms approximately 91.53% of global competitors.
Conclusion
Investors considering Franklin Street Properties Corp should note the company's consistent dividend payments, despite the declining growth rate. While the payout ratio and profitability rank indicate a fair sustainability level, the company's growth metrics portray a mixed picture. Therefore, investors need to consider these factors carefully before making investment decisions.
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.
