Exploring the Dividend Performance and Sustainability of Gladstone Land Corp
Gladstone Land Corp(LAND, Financial) recently announced a dividend of $0.05 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-17. 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 Gladstone Land Corps dividend performance and assess its sustainability.
What Does Gladstone Land Corp Do?
Gladstone Land Corp is an externally-managed, agricultural REIT. It is mainly in the business of owning and leasing farmland. It manages operations in one reporting segment. It is focused 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 predominantly concentrated in locations where farmers are able to grow either fresh produce annual row crops (e.g., certain berries and vegetables), which are typically planted and harvested annually, or certain permanent crops (e.g., almonds, blueberries, pistachios, and wine grapes). To a much lesser extent, it also own farms that grow certain commodity crops (e.g., corn and beans).
A Glimpse at Gladstone Land Corp's Dividend History
Gladstone Land Corp has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Gladstone Land Corp's Dividend Yield and Growth
As of today, Gladstone Land Corp currently has a 12-month trailing dividend yield of 3.86% and a 12-month forward dividend yield of 3.89%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Gladstone Land Corp's annual dividend growth rate was 0.70%. Extended to a five-year horizon, this rate stayed the same.
Based on Gladstone Land Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Gladstone Land Corp stock as of today is approximately 4.00%.
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, Gladstone Land Corp's dividend payout ratio is 0.00.
Gladstone Land Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Gladstone Land Corp's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Gladstone Land Corp'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 Gladstone Land Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Gladstone Land Corp's revenue has increased by approximately 7.50% per year on average, a rate that outperforms than approximately 76.7% 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, a rate that outperforms than approximately 6.82% of global competitors.
Next Steps
Considering Gladstone Land Corp's consistent dividend payments, its growth rate, payout ratio, profitability, and growth metrics, it appears that the company is on a sustainable path. However, investors should continue to monitor these metrics to ensure the company maintains its dividend performance. Remember, a company's ability to sustain or increase dividends over time is a strong indicator of financial health and stability.
GuruFocus Premium users can screen for high-dividend yield stocks 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.
