An in-depth analysis of Global Self Storage Inc's dividend performance and sustainability
Global Self Storage Inc (NASDAQ:SELF) recently announced a dividend of $0.07 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-15. As investors anticipate this upcoming payment, it's essential to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, let's delve into Global Self Storage Inc's dividend performance and evaluate its sustainability.
Global Self Storage Inc: A Brief Overview
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Global Self Storage Inc is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops, and redevelops self-storage properties. Its self-storage properties offer affordable, easily accessible, and secure storage space for residential and commercial customers. The company, through its wholly-owned subsidiaries, owns and/or manages nearly 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.
A Look at Global Self Storage Inc's Dividend History
Global Self Storage Inc has upheld a consistent dividend payment record since 1992, with dividends currently distributed on a quarterly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Examining Global Self Storage Inc's Dividend Yield and Growth
As of today, Global Self Storage Inc boasts a 12-month trailing dividend yield of 5.69% and a 12-month forward dividend yield of 5.69%, indicating an expectation of consistent dividend payments over the next 12 months.
Over the past three years, Global Self Storage Inc's annual dividend growth rate was 1.90%. However, this rate decreased to 0.80% per year when extended to a five-year horizon.
Considering Global Self Storage Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Global Self Storage Inc stock as of today is approximately 5.92%.
Is Global Self Storage Inc's Dividend Sustainable?
The dividend payout ratio of Global Self Storage Inc, which stands at 1.07 as of 2023-06-30, provides insights into the portion of earnings the company distributes as dividends. This high ratio may suggest that the company's dividend may not be sustainable.
Global Self Storage Inc's profitability rank of 6 out of 10, as of 2023-06-30, suggests fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Global Self Storage Inc's Growth Metrics
Global Self Storage Inc's growth rank of 6 out of 10 suggests a fair growth outlook. However, the company's revenue per share and 3-year revenue growth rate indicate a decrease of approximately -0.90% per year on average, underperforming approximately 61.99% 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, Global Self Storage Inc's earnings increased by approximately 33.40% per year on average, underperforming approximately 19.34% of global competitors.
While Global Self Storage Inc has a commendable history of consistent dividend payments, its high payout ratio and underperformance in revenue and EPS growth rates raise questions about the sustainability of its dividends. The company's fair profitability and growth outlook suggest that it has the potential to maintain dividends, but it will require careful monitoring and strategic decisions.
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This article first appeared on GuruFocus.