Unveiling Creative Media & Community Trust's Dividend Performance: A Comprehensive Insight
Understanding CMCT's Dividend History, Yield, Growth and Sustainability
Creative Media & Community Trust(NASDAQ:CMCT) recently announced a dividend of $0.09 per share, payable on 2023-10-23, 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 Creative Media & Community Trusts dividend performance and assess its sustainability.
What Does Creative Media & Community Trust Do?
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Creative Media & Community Trust is a United states based company that formed to invest in, own, and operate Class A and creative office investments in improving urban communities throughout the United States. It operates through two segments: Office and Hotel, and Lending. The Office segment includes rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The Hotel segment relates to operations of hotel properties whereas, the lending segment refers to income from the yield and other related fee income earned on its loans receivable. The lending segment includes income recognized from the sale of government guaranteed portion of loans receivable, income from the yield on its loans receivable and other related fee income earned.
A Glimpse at Creative Media & Community Trust's Dividend History
Creative Media & Community Trust has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Creative Media & Community Trust's Dividend Yield and Growth
As of today, Creative Media & Community Trust currently has a 12-month trailing dividend yield of 8.29% and a 12-month forward dividend yield of 8.29%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Creative Media & Community Trust's annual dividend growth rate was -27.70%. Extended to a five-year horizon, this rate decreased to -33.40% per year. And over the past decade, Creative Media & Community Trust's annual dividends per share growth rate stands at -30.10%.
Based on Creative Media & Community Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Creative Media & Community Trust stock as of today is approximately 1.09%.
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 2023-06-30, Creative Media & Community Trust's dividend payout ratio is 0.00.
Creative Media & Community Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Creative Media & Community Trust's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Creative Media & Community Trust'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 Creative Media & Community Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Creative Media & Community Trust's revenue has increased by approximately -19.70% per year on average, a rate that underperforms than approximately 93.03% of global competitors.
Next Steps
While Creative Media & Community Trust's dividend payments and growth rate have been inconsistent, its payout ratio and profitability suggest a potential for sustainability. However, its growth metrics indicate a fair outlook. Therefore, investors should closely monitor these factors 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.
