Physicians Realty Trust (DOC): A Deep Dive into the Dividend Performance
Unraveling the Dividend History, Yield, and Sustainability of Physicians Realty Trust
Physicians Realty Trust (NYSE:DOC) recently announced a dividend of $0.23 per share, payable on 2023-10-17, with the ex-dividend date set for 2023-10-02. 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 deep dive into Physicians Realty Trust's dividend performance and assess its sustainability.
Understanding Physicians Realty Trust
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Physicians Realty Trust is a company belonging to the United States healthcare sector. It acquires, develops, and leases healthcare properties to physicians, hospitals, and healthcare delivery systems. Its portfolio includes medical office buildings, outpatient treatment and diagnostic facilities, physician group practice clinics, ambulatory surgery centres, and specialty hospitals. The company also alternatively invests in life science facilities, senior housing properties, skilled nursing facilities, and treatment centers.
Tracing Physicians Realty Trust's Dividend History
Physicians Realty Trust has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Assessing Physicians Realty Trust's Dividend Yield and Growth
As of today, Physicians Realty Trust currently has a 12-month trailing dividend yield of 7.55% and a 12-month forward dividend yield of 7.55%. This suggests an expectation of same dividend payments over the next 12 months. Physicians Realty Trust's dividend yield of 7.55% is near a 10-year high and outperforms than 56 of global competitors in the REITs industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Extended to a five-year horizon, this rate increased to 0.10% per year. Based on Physicians Realty Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Physicians Realty Trust stock as of today is approximately 7.55%.
Evaluating the Sustainability of Physicians Realty Trust's Dividend
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, Physicians Realty Trust's dividend payout ratio is 2.14, which may suggest that the company's dividend may not be sustainable.
Physicians Realty Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Physicians Realty Trust's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.
Looking into Physicians Realty Trust's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Physicians Realty Trust'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 Physicians Realty Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Physicians Realty Trust's revenue has increased by approximately 0.50% per year on average, a rate that underperforms than approximately 53.57% 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, Physicians Realty Trust's earnings increased by approximately 5.70% per year on average, a rate that underperforms than approximately 45.34% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.30%, which underperforms than approximately 29.51% of global competitors.
Conclusion
Physicians Realty Trust's consistent dividend history, attractive yield, and robust profitability rank make it a compelling consideration for income investors. However, its high payout ratio and relative underperformance in growth metrics compared to global competitors signal caution. Therefore, investors should carefully evaluate these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
