Unfolding the Dividend Story of Manhattan Bridge Capital Inc
Insights into the Dividend Performance and Future Prospects of Manhattan Bridge Capital Inc
Manhattan Bridge Capital Inc(NASDAQ:LOAN) recently announced a dividend of $0.11 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-10-06. 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 Manhattan Bridge Capital Inc's dividend performance and assess its sustainability.
Company Overview
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Manhattan Bridge Capital Inc is a real estate finance company taxed as a REIT that specializes in originating, servicing and managing a portfolio of first mortgage loans. The company offers short-term, secured, non-banking loans which may renew or extend, before or after their initial term expires, to real estate investors to fund their acquisition, renovation, rehabilitation or development of residential or commercial properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida.
Dividend History
Manhattan Bridge Capital Inc 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.
Dividend Yield and Growth
As of today, Manhattan Bridge Capital Inc currently has a 12-month trailing dividend yield of 9.95% and a 12-month forward dividend yield of 9.46%. This suggests an expectation of decrease dividend payments over the next 12 months. Over the past three years, Manhattan Bridge Capital Inc's annual dividend growth rate was 1.40%. Extended to a five-year horizon, this rate increased to 6.90% per year. Based on Manhattan Bridge Capital Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Manhattan Bridge Capital Inc stock as of today is approximately 13.89%.
Payout Ratio and Profitability Analysis
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, Manhattan Bridge Capital Inc's dividend payout ratio is 1.08. And this may suggest that the company's dividend may not be sustainable. Manhattan Bridge Capital Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Manhattan Bridge Capital Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. 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. Manhattan Bridge Capital Inc'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 Manhattan Bridge Capital Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Manhattan Bridge Capital Inc's revenue has increased by approximately -0.20% per year on average, a rate that underperforms than approximately 58% 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, Manhattan Bridge Capital Inc's earnings increased by approximately -1.40% per year on average, a rate that underperforms than approximately 59.01% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -0.40%, which underperforms than approximately 67.24% of global competitors.
Concluding Thoughts
Manhattan Bridge Capital Inc's dividend payments, dividend growth rate, payout ratio, profitability and growth metrics present a mixed picture. While the company has a commendable track record of consistent dividend payments and a decent profitability rank, its high payout ratio and underperformance in growth metrics raise concerns about the sustainability of future dividends. Therefore, investors need to monitor the company's performance closely to make informed decisions. 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.
