New York Mortgage Trust Inc's Dividend Analysis
Assessing the Dividend Sustainability of NYMT
New York Mortgage Trust Inc (NASDAQ:NYMT) recently announced a dividend of $0.2 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-03-22. 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 for federal income tax purposes, in the business of acquiring, investing in, financing and managing mortgage-related and residential housing-related assets. The company's investment portfolio consists of structured multi-family property investments such as multi-family CMBS and preferred equity in, and mezzanine loans to owners of multi-family properties. Distressed residential assets such as residential mortgage loans sourced from distressed markets and non-Agency RMBS. Second mortgages, Agency RMBS, and certain other mortgage-related and residential housing-related assets.
A Glimpse at New York Mortgage Trust Inc's Dividend History
New York Mortgage Trust Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down New York Mortgage Trust Inc's Dividend Yield and Growth
As of today, New York Mortgage Trust Inc currently has a 12-month trailing dividend yield of 16.35% and a 12-month forward dividend yield of 10.90%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, New York Mortgage Trust Inc's annual dividend growth rate was 10.10%. Extended to a five-year horizon, this rate decreased to -16.70% per year. And over the past decade, New York Mortgage Trust Inc's annual dividends per share growth rate stands at -13.60%.
Based on New York Mortgage Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of New York Mortgage Trust Inc stock as of today is approximately 6.56%.
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 2023-12-31, New York Mortgage Trust Inc's dividend payout ratio is 8.63, which may suggest that the company's dividend could be sustainable.
New York Mortgage Trust Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks New York Mortgage Trust Inc's profitability 4 out of 10 as of 2023-12-31, which suggests that the dividend may be sustainable, given that the company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. New York Mortgage Trust Inc's growth rank of 4 out of 10 suggests that the company has moderate growth prospects and thus, the dividend may be sustainable. 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, New York Mortgage Trust Inc's earnings increased by approximately 68.30% per year on average, a rate that outperforms approximately 89.59% of global competitors.
Concluding Insights on NYMT's Dividend Profile
While New York Mortgage Trust Inc's dividend yield is impressive, the fluctuating growth rates and moderate profitability rank suggest a need for investors to monitor the company's performance closely. Considering the payout ratio and the 3-year EPS growth rate, the dividends appear to be sustainable at present. However, investors should remain vigilant of any significant changes in the company's financial health or market conditions that could affect future dividend payments. For those seeking to expand their portfolio with high-dividend-yielding stocks, GuruFocus Premium users can screen for opportunities 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.
