Gladstone Commercial Corp's Dividend Analysis
An In-depth Look at the Dividend Performance and Sustainability of Gladstone Commercial Corp
Gladstone Commercial Corp(NASDAQ:GOOD) recently announced a dividend of $0.1 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-17. 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 delve into Gladstone Commercial Corp's dividend performance and assess its sustainability.
What Does Gladstone Commercial Corp Do?
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Gladstone Commercial Corp is a real estate investment trust that invests and owns net leased industrial, commercial, and retail real property. It also makes long-term industrial and commercial mortgage loans. Its portfolio consists of single-tenant commercial, industrial real properties, and medical properties nationwide. Its principal investment objectives are to generate income from rental properties.
A Glimpse at Gladstone Commercial Corp's Dividend History
Gladstone Commercial Corp has maintained a consistent dividend payment record since 2003, distributed on a monthly basis. The company has increased its dividend each year since 2003, earning it the status of a dividend achiever, a title given to companies that have increased their dividend each year for at least the past 20 years.
Breaking Down Gladstone Commercial Corp's Dividend Yield and Growth
As of today, Gladstone Commercial Corp currently has a 12-month trailing dividend yield of 10.22% and a 12-month forward dividend yield of 9.61%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Gladstone Commercial Corp's annual dividend growth rate was 0.10%. Extended to a five-year horizon, this rate stayed the same. Based on Gladstone Commercial Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Gladstone Commercial Corp stock as of today is approximately 10.27%.
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 2023-06-30, Gladstone Commercial Corp's dividend payout ratio is 0.00.
Gladstone Commercial Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Gladstone Commercial Corp's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Gladstone Commercial Corp'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 Gladstone Commercial Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Gladstone Commercial Corp's revenue has increased by approximately 0.90% per year on average, a rate that underperforms than approximately 50.24% 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, Gladstone Commercial Corp's earnings increased by approximately 20.60% per year on average, a rate that underperforms than approximately 28.93% of global competitors.
Conclusion
In conclusion, Gladstone Commercial Corp's consistent dividend payment record, its profitability rank, and growth metrics make it a company worth considering for dividend-focused investors. However, the company's payout ratio and the expected decrease in dividend payments over the next 12 months should be taken into account. It is crucial for investors to continue monitoring these factors to make informed decisions.
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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.
