A comprehensive review of One Liberty Properties Inc's dividend history, yield, growth, and sustainability
One Liberty Properties Inc (OLP, Financial) recently announced a dividend of $0.45 per share, payable on October 11, 2023, with the ex-dividend date set for October 2, 2023. As investors eagerly await this upcoming payment, it's vital to take a closer look at the company's dividend history, yield, and growth rates. Using data from GuruFocus, we will delve into One Liberty Properties Inc's dividend performance and evaluate its sustainability.
Company Overview: One Liberty Properties Inc
One Liberty Properties Inc is a self-administered and self-managed real estate investment trust. The company acquires, owns, and manages a diverse portfolio of industrial, retail, restaurant, health and fitness, and theater properties. The majority of its revenue is generated in the form of rental income.
One Liberty Properties Inc's Dividend History
One Liberty Properties Inc has maintained a consistent dividend payment record since 1991, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2009, earning it the status of a dividend achiever. This honor is bestowed upon companies that have consistently increased their dividend each year for at least the past 14 years.
One Liberty Properties Inc's Dividend Yield and Growth
As of today, One Liberty Properties Inc has a 12-month trailing dividend yield of 9.54% and a 12-month forward dividend yield of 9.54%, suggesting an expectation of stable dividend payments over the next 12 months.
Over the past five years, the company's dividend growth rate increased to 0.50% per year, and the annual dividends per share growth rate over the past decade is 3.10%. Based on these figures, the 5-year yield on cost of One Liberty Properties Inc stock as of today is approximately 9.76%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a company's dividend can be evaluated by examining its payout ratio. The dividend payout ratio reveals the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of June 30, 2023, One Liberty Properties Inc's dividend payout ratio is 1.37, which may suggest that the company's dividend may not be sustainable.
One Liberty Properties Inc's profitability rank, as of June 30, 2023, is 7 out of 10, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Future Outlook: Growth Metrics
For a company to sustain its dividends, it must exhibit robust growth metrics. One Liberty Properties Inc's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors.
One Liberty Properties Inc's revenue per share and 3-year revenue growth rate indicate a strong revenue model. However, the company's revenue has increased by approximately 0.60% per year on average, a rate that underperforms approximately 52.3% 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. Over the past three years, One Liberty Properties Inc's earnings increased by approximately 31.30% per year on average, a rate that underperforms approximately 21.33% of global competitors.
Finally, the company's 5-year EBITDA growth rate of 13.10% underperforms approximately 27.78% of global competitors.
Conclusion
While One Liberty Properties Inc has a commendable history of consistent and growing dividend payments, the sustainability of its dividends is questionable, given its high payout ratio. However, the company's profitability rank and growth metrics suggest a promising future. Investors should continue monitoring the company's financial performance and growth prospects to make informed decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
