A Deep Dive into the Dividend History, Yield, and Growth of Gladstone Land Corp (LAND, Financial)
Gladstone Land Corp(LAND) recently announced a dividend of $0.05 per share, scheduled for payment on 2023-09-29, with the ex-dividend date set for 2023-09-20. As investors anticipate this upcoming payment, it is fitting to spotlight the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this article provides an in-depth analysis of Gladstone Land Corp's dividend performance and its sustainability.
Understanding Gladstone Land Corp's Business Model
Gladstone Land Corp is an externally-managed, agricultural real estate investment trust (REIT) primarily engaged in owning and leasing farmland. The company operates in one reporting segment, focusing on the ownership of high-quality farms and farm-related properties that are leased on a triple-net basis to tenants with a strong operating history and deep farming resources. The farmland is largely concentrated in locations where farmers can grow either fresh produce annual row crops or certain permanent crops. To a much lesser extent, it also owns farms that grow certain commodity crops.
A Glimpse at Gladstone Land Corp's Dividend History
Gladstone Land Corp has maintained a consistent dividend payment record since 2013, with dividends currently distributed on a monthly basis. The chart below provides a historical perspective on the company's annual Dividends Per Share.
Breaking Down Gladstone Land Corp's Dividend Yield and Growth
Gladstone Land Corp currently has a 12-month trailing dividend yield of 3.68% and a 12-month forward dividend yield of 3.70%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 0.70%, a rate that remained steady over a five-year period. Based on these metrics, the 5-year yield on cost of Gladstone Land Corp stock as of today is approximately 3.81%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio of Gladstone Land Corp, which provides insights into the portion of earnings the company distributes as dividends, is a crucial metric for evaluating dividend sustainability. A lower ratio indicates that the company retains a significant part of its earnings, thereby ensuring funds for future growth and unexpected downturns. As of 2023-06-30, Gladstone Land Corp's dividend payout ratio is 0.00.
Gladstone Land Corp's profitability rank of 7 out of 10 as of 2023-06-30, suggests good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Assessing Future Prospects: Growth Metrics
Gladstone Land Corp's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average increase of approximately 7.50% per year, outperforming approximately 76.66% 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, Gladstone Land Corp's earnings increased by approximately -49.00% per year on average, outperforming approximately 6.79% of global competitors.
Conclusion
In conclusion, Gladstone Land Corp's consistent dividend payments, steady growth rate, low payout ratio, good profitability, and robust growth metrics indicate a sustainable dividend model. These factors make it an attractive option for investors seeking steady income through dividends. However, as with any investment decision, it's crucial to conduct thorough research and consider all relevant factors.
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