Understanding UDR Inc's Dividend Sustainability and Growth
UDR Inc (UDR, Financial) recently announced a dividend of $0.43 per share, payable on 2024-04-30, with the ex-dividend date set for 2024-04-09. 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 UDR Inc's dividend performance and assess its sustainability.
What Does UDR Inc Do?
UDR Inc is a real estate investment trust that specializes in the ownership, operation, acquisition, renovation, development, redevelopment, disposal, and management of multifamily apartment communities across the United States. The company operates through two segments: Same-Store Communities and Non-Mature Communities/Other. The Same-Store Communities segment includes properties acquired, developed, and stabilized before January 1, 2021, and held through December 31, 2022. Non-Mature Communities/Other includes properties that do not meet the criteria of Same-Store Communities, such as recently acquired, developed, and redeveloped communities, as well as non-apartment components of mixed-use properties. The majority of UDR Inc's revenue is generated from its Same-Store Communities.
A Glimpse at UDR Inc's Dividend History
UDR Inc has a long-standing history of distributing dividends, with consistent payments since 1985. These dividends are distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down UDR Inc's Dividend Yield and Growth
As of today, UDR Inc currently has a 12-month trailing dividend yield of 4.60% and a forward dividend yield of 4.66%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, UDR Inc's annual dividend growth rate was -4.00%. However, when extended to a five-year horizon, this rate improved to 1.50% per year. Over the past decade, UDR Inc's annual dividends per share growth rate stands at 4.40%. Based on UDR Inc's dividend yield and five-year growth rate, the 5-year yield on cost of UDR Inc stock as of today is approximately 4.96%.
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. As of 2023-12-31, UDR Inc's dividend payout ratio is 4.26, which may suggest concerns about the dividend's sustainability. Conversely, UDR Inc's profitability rank is 8 out of 10, indicating good profitability prospects. The company has reported positive net income each year over the past decade, reinforcing its robust profitability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must demonstrate solid growth metrics. UDR Inc's growth rank of 8 out of 10 suggests a strong growth trajectory compared to its competitors. Revenue, the lifeblood of any company, is well-represented in UDR Inc's revenue per share and 3-year revenue growth rate, which has been increasing at an average rate of 5.50% per year. This outperforms approximately 60.61% of global competitors.
Next Steps for Investors
Considering UDR Inc's consistent dividend payments, moderate dividend growth rate, questionable payout ratio, strong profitability, and solid growth metrics, investors should weigh these factors when evaluating the stock's dividend profile. For those seeking high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover similar investment options.
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.
