Land Securities Group PLC's Dividend Analysis
An In-Depth Look at Upcoming and Historical Dividend Performance
Land Securities Group PLC (LSGOF) recently announced a dividend of $0.09 per share, payable on 2024-01-02, with the ex-dividend date set for 2023-11-24. 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 Land Securities Group PLC's dividend performance and assess its sustainability.
What Does Land Securities Group PLC Do?
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Land Securities Group PLC is a real estate investment trust engaged in buying, selling, developing, and managing commercial property in the United Kingdom. The company's real estate portfolio is made up of office, retail, and leisure spaces in the London and Greater London regions. Office locations in London's West End, offices in the City of London, and shopping centers comprise the majority of the value of Land Securities' total assets. The company derives nearly all of its revenue in the form of rental income from medium- to long-term leases with tenants. Land Securities' overall net rental income is fairly evenly split between revenue from its London office properties and its retail properties in Greater London.
A Glimpse at Land Securities Group PLC's Dividend History
Land Securities Group PLC has maintained a consistent dividend payment record since 2008. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Land Securities Group PLC's Dividend Yield and Growth
As of today, Land Securities Group PLC currently has a 12-month trailing dividend yield of 5.98% and a 12-month forward dividend yield of 6.05%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Land Securities Group PLC's annual dividend growth rate was 4.30%. Extended to a five-year horizon, this rate decreased to -6.10% per year. And over the past decade, Land Securities Group PLC's annual dividends per share growth rate stands at -0.40%.
Based on Land Securities Group PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Land Securities Group PLC stock as of today is approximately 4.37%.
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 2023-09-30, Land Securities Group PLC's dividend payout ratio is 0.00.
Land Securities Group PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Land Securities Group PLC's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 5 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. Land Securities Group PLC's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Land Securities Group PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Land Securities Group PLC's revenue has increased by approximately 2.10% per year on average, a rate that outperforms approximately 56.4% 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, Land Securities Group PLC's earnings increased by approximately -1.70% per year on average, a rate that outperforms approximately 42.37% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -3.30%, which outperforms approximately 36.59% of global competitors.
Next Steps
Considering Land Securities Group PLC's stable dividend payments, moderate dividend growth rate, low payout ratio, and fair profitability and growth metrics, the company's dividend appears sustainable. However, investors should also weigh these factors against their investment strategy and market conditions. With the potential for increased dividends and a solid foundation in the real estate sector, Land Securities Group PLC presents an interesting opportunity for dividend-focused investors. Will the company continue its path of steady dividends, and how will it navigate the dynamic real estate market? These are questions investors might ponder as they consider adding Land Securities Group PLC to their portfolios. 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.
