A comprehensive analysis of Brixmor Property Group Inc's dividend history, yield, growth, and sustainability
Brixmor Property Group Inc(BRX, Financial) recently announced a dividend of $0.26 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-10-02. 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 Brixmor Property Group Inc's dividend performance and assess its sustainability.
What Does Brixmor Property Group Inc Do?
Brixmor Property Group Inc is a real estate investment trust based in the United States. The company owns and operates a portfolio of grocery-anchored community and neighborhood shopping centers across the United States. It leases its rentable areas to retailers, restaurants, theatres, entertainment venues, and fitness centers, with the company's tenants consisting of large department stores, discount retailers, and grocery stores. The company is an internally managed REIT.
A Glimpse at Brixmor Property Group Inc's Dividend History
Brixmor Property Group Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Brixmor Property Group Inc's Dividend Yield and Growth
As of today, Brixmor Property Group Inc currently has a 12-month trailing dividend yield of 4.91% and a 12-month forward dividend yield of 5.00%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Brixmor Property Group Inc's annual dividend growth rate was -4.50%. Extended to a five-year horizon, this rate decreased to -5.10% per year.
Based on Brixmor Property Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Brixmor Property Group Inc stock as of today is approximately 3.78%.
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, Brixmor Property Group Inc's dividend payout ratio is 0.87. This may suggest that the company's dividend may not be sustainable.
Brixmor Property Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Brixmor Property Group Inc's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 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. Brixmor Property Group Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Brixmor Property Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Brixmor Property Group Inc's revenue has increased by approximately 1.10% per year on average, a rate that outperforms approximately 50.87% 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, Brixmor Property Group Inc's earnings increased by approximately 8.30% per year on average, a rate that outperforms approximately 59.42% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -2.30%, outperforms approximately 28.82% of global competitors.
Conclusion
In conclusion, Brixmor Property Group Inc's consistent dividend payments, combined with its sound profitability and growth metrics, make it a noteworthy candidate for dividend-focused investors. However, the relatively high payout ratio indicates a need for caution, as it may pose challenges to the sustainability of future dividends. Therefore, investors should closely monitor the company's earnings growth and payout ratio trends to make informed investment decisions.
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