Hudson Pacific Properties Inc's Dividend Analysis
Assessing the Dividend Profile of Hudson Pacific Properties Inc
Hudson Pacific Properties Inc (NYSE:HPP) recently announced a dividend of $0.05 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-03-15. 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 Hudson Pacific Properties Inc's dividend performance and assess its sustainability.
What Does Hudson Pacific Properties Inc Do?
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Hudson Pacific Properties Inc is a real estate investment trust that acquires, operates, and owns office buildings and media and entertainment properties, such as sound stages, on America's West Coast. The company focuses on developed, urban markets in Northern California, Southern California, and the Pacific Northwest. In terms of total square footage, the vast majority of Hudson Pacific's real estate portfolio is composed of office properties located in the Greater Seattle, San Francisco, and Los Angeles areas. The company operates in two reportable segments; office properties & related operations; and studio properties & related operations. The majority of revenue is derived from the office properties & related operations segment.
A Glimpse at Hudson Pacific Properties Inc's Dividend History
Hudson Pacific Properties Inc has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hudson Pacific Properties Inc's Dividend Yield and Growth
As of today, Hudson Pacific Properties Inc currently has a 12-month trailing dividend yield of 5.93% and a 12-month forward dividend yield of 6.72%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Hudson Pacific Properties Inc's annual dividend growth rate was -27.90%. Extended to a five-year horizon, this rate increased to -13.10% per year. And over the past decade, Hudson Pacific Properties Inc's annual dividends per share growth rate stands at 3.20%.
Based on Hudson Pacific Properties Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Hudson Pacific Properties Inc stock as of today is approximately 2.94%.
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 2023-12-31, Hudson Pacific Properties Inc's dividend payout ratio is 0.00.
Hudson Pacific Properties Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hudson Pacific Properties Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hudson Pacific Properties 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 Hudson Pacific Properties Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hudson Pacific Properties Inc's revenue has increased by approximately 8.70% per year on average, a rate that outperforms approximately 74.05% of global competitors.
Concluding Thoughts on Hudson Pacific Properties Inc's Dividend Profile
In conclusion, Hudson Pacific Properties Inc's consistent dividend payments, despite a negative growth rate in the short term, may raise some concerns for investors looking for stable long-term income. However, the company's solid profitability and growth metrics, coupled with a non-existent payout ratio, suggest a potential for future dividend sustainability and growth. Investors should consider these factors along with their own investment goals and the broader market outlook. For those interested in further analysis or in search of high-dividend yield opportunities, GuruFocus Premium offers a comprehensive 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.
