Invitation Homes Inc's Dividend Analysis
A Comprehensive Review of Invitation Homes Inc's Dividend Performance and Sustainability
Invitation Homes Inc (NYSE:INVH) recently announced a dividend of $0.26 per share, payable on 2023-11-22, with the ex-dividend date set for 2023-11-06. As investors anticipate this upcoming payment, it's also critical to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, let's delve into Invitation Homes Inc's dividend performance and assess its sustainability.
About Invitation Homes Inc
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Invitation Homes owns a portfolio of nearly 83,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $300,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with over 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.
Invitation Homes Inc's Dividend History
Since 2017, Invitation Homes Inc has maintained a consistent dividend payment record, with dividends currently distributed on a quarterly basis. The chart below provides a historical view of the company's annual Dividends Per Share.
Invitation Homes Inc's Dividend Yield and Growth
As of today, Invitation Homes Inc has a 12-month trailing dividend yield of 3.13% and a 12-month forward dividend yield of 3.25%. This suggests an expected increase in dividend payments over the next 12 months.
Over the past three years, Invitation Homes Inc's annual dividend growth rate was 19.20%. When extended to a five-year horizon, this rate increased to 27.10% per year. Consequently, the 5-year yield on cost of Invitation Homes Inc stock as of today is approximately 10.38%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio offers 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Invitation Homes Inc's dividend payout ratio is 1.23, which may suggest that the company's dividend may not be sustainable.
Invitation Homes Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. As of 2023-09-30, GuruFocus ranks Invitation Homes Inc's profitability 6 out of 10, suggesting fair profitability. The company has reported net profit in 4 years out of the past 10 years.
Invitation Homes Inc's Growth Metrics and Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Invitation Homes Inc's growth rank of 6 out of 10 suggests a fair growth outlook.
Revenue is the lifeblood of any company, and Invitation Homes Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Invitation Homes Inc's revenue has increased by approximately 3.40% per year on average, a rate that outperforms approximately 62.03% 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, Invitation Homes Inc's earnings increased by approximately 53.00% per year on average, a rate that outperforms approximately 89.52% of global competitors.
Concluding Thoughts
While Invitation Homes Inc has demonstrated a consistent dividend payment record and robust growth metrics, the high payout ratio raises questions about the sustainability of its dividends. Therefore, investors must carefully consider these factors 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.
