Unfolding the Dividend Story of SITE Centers Corp
A Comprehensive Analysis of the Company's Dividend Performance and Sustainability
SITE Centers Corp (NYSE:SITC) recently announced a dividend of $0.13 per share, payable on 2023-10-12, with the ex-dividend date set for 2023-09-25. 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 SITE Centers Corp's dividend performance and assess its sustainability.
Understanding SITE Centers Corp
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SITE Centers Corp is a United States-based self-administered and self-managed REIT that operates as a fully integrated real estate company. The company is the owner and manager of open-air shopping centers that provide a compelling shopping experience and merchandise mix for retail partners and consumers.
Tracing SITE Centers Corp's Dividend History
SITE Centers Corp has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Decoding SITE Centers Corp's Dividend Yield and Growth
As of today, SITE Centers Corp currently has a 12-month trailing dividend yield of 4.12% and a 12-month forward dividend yield of 4.12%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, SITE Centers Corp's annual dividend growth rate was -13.40%. Extended to a five-year horizon, this rate decreased to -23.20% per year. And over the past decade, SITE Centers Corp's annual dividends per share growth rate stands at -10.80%.
Based on SITE Centers Corp's dividend yield and five-year growth rate, the 5-year yield on cost of SITE Centers Corp stock as of today is approximately 1.10%.
Assessing 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, SITE Centers Corp's dividend payout ratio is 1.08. This may suggest that the company's dividend may not be sustainable.
SITE Centers Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks SITE Centers Corp's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 7 years out of past 10 years.
Peering into the Future: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. SITE Centers Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and SITE Centers Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. SITE Centers Corp's revenue has increased by approximately -2.30% per year on average, a rate that underperforms than approximately 66.51% 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, SITE Centers Corp's earnings increased by approximately 30.30% per year on average, a rate that underperforms than approximately 21.65% of global competitors.
Conclusion
While SITE Centers Corp's consistent dividend payments and fair profitability rank are commendable, its negative dividend growth rate and high payout ratio raise concerns about the sustainability of its dividends. The company's growth metrics also suggest a fair growth outlook, but its underperformance compared to global competitors might be a potential red flag. As investors, it is crucial to consider these factors before making investment decisions.
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This article first appeared on GuruFocus.
