The RMR Group Inc's Dividend Analysis
Insights into The RMR Group Inc's Upcoming Dividend Payment and Financial Health
The RMR Group Inc (NASDAQ:RMR) recently announced a dividend of $0.4 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-19. 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 The RMR Group Inc's dividend performance and assess its sustainability.
What Does The RMR Group Inc Do?
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The RMR Group Inc is a holding company that conducts its business through its subsidiary, which is an alternative asset management company that invests in real estate and manages real estate-related businesses. Its business consists of providing management services to publicly owned real estate investment trusts, or REITs, and real estate-related operating companies. It also provides management services to real estate securities mutual funds and commercial real estate finance companies. The company's operating segment is RMR LLC and All Other Operations. The RMR Group derives its revenue from providing business and property management services as well as advisory and other services.
A Glimpse at The RMR Group Inc's Dividend History
The RMR Group Inc has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down The RMR Group Inc's Dividend Yield and Growth
As of today, The RMR Group Inc currently has a 12-month trailing dividend yield of 6.06% and a 12-month forward dividend yield of 6.06%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, The RMR Group Inc's annual dividend growth rate was 1.70%. Extended to a five-year horizon, this rate increased to 7.90% per year. Based on The RMR Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of The RMR Group Inc stock as of today is approximately 8.86%.
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, The RMR Group Inc's dividend payout ratio is 0.47. The RMR Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks The RMR Group Inc's profitability 9 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. The RMR Group Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and The RMR Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The RMR Group Inc's revenue has increased by approximately 45.80% per year on average, a rate that outperforms approximately 92.1% 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, The RMR Group Inc's earnings increased by approximately 26.80% per year on average, a rate that outperforms approximately 78.15% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -14.00%, which outperforms approximately 19.48% of global competitors.
Conclusion: Assessing The RMR Group Inc's Dividend Prospects
In conclusion, The RMR Group Inc's dividend payments, growth rate, and payout ratio present an attractive proposition for investors seeking income. The company's strong profitability rank and positive net income trajectory bode well for future dividend sustainability. Additionally, The RMR Group Inc's robust growth metrics, including its impressive revenue and EPS growth rates, provide confidence in the company's ability to maintain and potentially increase its dividend payouts. Investors considering The RMR Group Inc for its dividend potential should also consider the broader context of the company's financial health and market position. 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.
