Saul Centers Inc's Dividend Analysis
An In-depth Examination of Saul Centers Inc's Dividend Performance
Saul Centers Inc(NYSE:BFS) recently announced a dividend of $0.59 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. 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 delve into Saul Centers Inc's dividend performance and assess its sustainability.
Introduction to Saul Centers Inc
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Saul Centers Inc is a self-managed real estate investment trust which invests in, operates, and develops retail and commercial properties. The company's portfolio includes community and neighborhood shopping centers, office properties, and mixed-use properties. Properties are primarily located in the Washington, D.C. and Maryland metropolitan areas. Saul Centers operates through two business segments: shopping centers, which contribute the maximum portion of total revenue; and mixed-use properties. Major tenants include grocery stores, discount department stores, and drug stores.
A Historical Overview of Saul Centers Inc's Dividends
Saul Centers Inc has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis. Saul Centers Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years.
Understanding Saul Centers Inc's Dividend Yield and Growth
As of today, Saul Centers Inc currently has a 12-month trailing dividend yield of 6.74% and a 12-month forward dividend yield of 6.74%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Saul Centers Inc's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate decreased to 2.20% per year. And over the past decade, Saul Centers Inc's annual dividends per share growth rate stands at 5.10%.
Based on Saul Centers Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Saul Centers Inc stock as of today is approximately 7.51%.
Dividend Sustainability: 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 2023-06-30, Saul Centers Inc's dividend payout ratio is 1.44. This may suggest that the company's dividend may not be sustainable.
Saul Centers Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Saul Centers Inc's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Saul Centers 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 Saul Centers Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Saul Centers Inc's revenue has increased by approximately -10.30% per year on average, a rate that underperforms than approximately 86.37% 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, Saul Centers Inc's earnings increased by approximately 1.30% per year on average, a rate that underperforms than approximately 53.31% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -0.80%, which underperforms than approximately 68.51% of global competitors.
Conclusion
In conclusion, while Saul Centers Inc has a commendable history of consistent dividend payments and shows good profitability, its high payout ratio and underperforming growth rates compared to global competitors suggest caution. Investors should consider these factors and their own risk tolerance before making a decision about Saul Centers Inc's dividends. The sustainability of dividends is not only about the present but also about the future growth and profitability of the company.
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.
