New York Mortgage Trust Inc's Dividend Analysis
Insight into NYMT's Dividend Sustainability and Performance
New York Mortgage Trust Inc (NASDAQ:NYMT) recently announced a dividend of $0.20 per share, payable on 2024-01-26, with the ex-dividend date set for 2023-12-22. 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 look into New York Mortgage Trust Inc's dividend performance and assess its sustainability.
What Does New York Mortgage Trust Inc Do?
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New York Mortgage Trust Inc is a real estate investment trust (REIT) that focuses on acquiring, investing in, financing, and managing mortgage-related and residential housing-related assets. The company's investment portfolio is diverse, including structured multi-family property investments, distressed residential assets, second mortgages, Agency RMBS, and other related assets. New York Mortgage Trust Inc's strategy is to provide investors with stable returns through a variety of real estate and mortgage-backed securities.
A Glimpse at New York Mortgage Trust Inc's Dividend History
New York Mortgage Trust Inc has a long-standing tradition of distributing dividends, with a consistent payment record since 2004. The dividends are currently distributed on a quarterly basis, which provides a steady income stream for shareholders. Below is a chart showing annual Dividends Per Share to help track historical trends.
Breaking Down New York Mortgage Trust Inc's Dividend Yield and Growth
As of today, New York Mortgage Trust Inc boasts a 12-month trailing dividend yield of 15.82% and a 12-month forward dividend yield of 8.99%, indicating market expectations of decreased dividend payments over the next year. Over the past three years, the annual dividend growth rate was -20.60%, which improved slightly to -17.70% over a five-year period. However, the ten-year annual dividends per share growth rate lingers at -12.10%. Considering these rates, the 5-year yield on cost for New York Mortgage Trust Inc stock is approximately 5.97%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is crucial to understanding the sustainability of dividends. A lower ratio indicates more retained earnings for growth and stability. As of 2023-09-30, New York Mortgage Trust Inc's dividend payout ratio is not applicable, which could raise concerns about the dividend's sustainability. The company's profitability rank is 4 out of 10, suggesting that the dividends may be at risk, despite the company reporting net profit in 8 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit strong growth metrics. Unfortunately, New York Mortgage Trust Inc's growth rank of 4 out of 10 indicates poor growth prospects. The company's revenue per share and 3-year revenue growth rate show a challenging revenue model, with an average annual decrease of approximately -69.40%, underperforming about 98.91% of global competitors.
Concluding Thoughts on New York Mortgage Trust Inc's Dividend Outlook
In conclusion, New York Mortgage Trust Inc's dividend payments present a mixed picture. While the company has a history of consistent dividend payments, the negative growth rates and uncertain payout ratio raise questions about future sustainability. Investors should closely monitor the company's profitability and growth metrics when considering the long-term viability of its dividend payments. For those seeking high-dividend yield investments, GuruFocus Premium offers a valuable resource with the High Dividend Yield Screener to discover similar opportunities.
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.
