Saul Centers Inc's Dividend Analysis
An In-depth Examination of Saul Centers Inc's Dividend Performance
Saul Centers Inc(NYSE:BFS) recently announced a dividend of $0.59 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. 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 delve into Saul Centers Inc's dividend performance and assess its sustainability.
Introduction to Saul Centers Inc
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Saul Centers Inc is a self-managed real estate investment trust which invests in, operates, and develops retail and commercial properties. The company's portfolio includes community and neighborhood shopping centers, office properties, and mixed-use properties. Properties are primarily located in the Washington, D.C. and Maryland metropolitan areas. Saul Centers operates through two business segments: shopping centers, which contribute the maximum portion of total revenue; and mixed-use properties. Major tenants include grocery stores, discount department stores, and drug stores.
A Historical Overview of Saul Centers Inc's Dividends
Saul Centers Inc has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis. Saul Centers Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years.
Understanding Saul Centers Inc's Dividend Yield and Growth
As of today, Saul Centers Inc currently has a 12-month trailing dividend yield of 6.74% and a 12-month forward dividend yield of 6.74%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Saul Centers Inc's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate decreased to 2.20% per year. And over the past decade, Saul Centers Inc's annual dividends per share growth rate stands at 5.10%.
Based on Saul Centers Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Saul Centers Inc stock as of today is approximately 7.51%.
Dividend Sustainability: 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, Saul Centers Inc's dividend payout ratio is 1.44. This may suggest that the company's dividend may not be sustainable.