A Comprehensive Review of BPZZF's Dividend History, Yield, Growth, and Future Prospects
Boston Pizza Royalties Income Fund(BPZZF, Financial) recently announced a dividend of $0.11 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-20. 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 Boston Pizza Royalties Income Funds dividend performance and assess its sustainability.
What Does Boston Pizza Royalties Income Fund Do?
Boston Pizza Royalties Income Fund is a limited-purpose open-ended trust. It is engaged in the operation and franchising of Boston Pizza restaurants in Canada. The Trust distributes all available cash from operations to the Trust unitholders to the maximum extent possible. The company receives revenue in the form of royalty income.
A Glimpse at Boston Pizza Royalties Income Fund's Dividend History
Boston Pizza Royalties Income Fund has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Boston Pizza Royalties Income Fund's Dividend Yield and Growth
As of today, Boston Pizza Royalties Income Fund currently has a 12-month trailing dividend yield of 7.67% and a 12-month forward dividend yield of 7.83%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Boston Pizza Royalties Income Fund's annual dividend growth rate was -6.90%. Extended to a five-year horizon, this rate decreased to -9.70% per year. And over the past decade, Boston Pizza Royalties Income Fund's annual dividends per share growth rate stands at -4.80%.
Based on Boston Pizza Royalties Income Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Boston Pizza Royalties Income Fund stock as of today is approximately 4.61%.
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, Boston Pizza Royalties Income Fund's dividend payout ratio is 0.74. And this may suggest that the company's dividend may not be sustainable.
Boston Pizza Royalties Income Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Boston Pizza Royalties Income Fund's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Boston Pizza Royalties Income Fund'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 Boston Pizza Royalties Income Fund's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Boston Pizza Royalties Income Fund's revenue has increased by approximately 0.40% per year on average, a rate that outperforms than approximately 58.73% 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, Boston Pizza Royalties Income Fund's earnings increased by approximately 14.20% per year on average, a rate that outperforms than approximately 59.48% of global competitors.
Conclusion
While Boston Pizza Royalties Income Fund's dividend payments are appealing, the negative dividend growth rate and high payout ratio raise questions about its sustainability. However, the company's strong profitability and growth metrics could provide a buffer. It will be crucial for potential investors to keep an eye on these factors moving forward. Will Boston Pizza Royalties Income Fund be able to maintain its dividend payments, or will the challenges lead to a cutback? Only time will tell.
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