An in-depth analysis of Getty Realty Corp's dividend history, yield, growth rates, and sustainability
Getty Realty Corp (GTY, Financial) recently announced a dividend of $0.43 per share, payable on 2023-10-12, with the ex-dividend date set for 2023-09-27. 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 Getty Realty Corp's dividend performance and assess its sustainability.
What Does Getty Realty Corp Do?
Getty Realty Corp is the leading real estate investment trust in the U.S. specializing in the acquisition, financing, and development of convenience, automotive, and other single tenant retail real estate. The company's portfolio includes convenience stores, car washes, automotive service centers, and certain other freestanding retail properties. It generates a majority of its revenue in the form of rental income.
A Glimpse at Getty Realty Corp's Dividend History
Getty Realty Corp has maintained a consistent dividend payment record since 1995. Dividends are currently distributed on a quarterly basis. The company has increased its dividend each year since 2012, earning it the title of a dividend achiever.
Breaking Down Getty Realty Corp's Dividend Yield and Growth
As of today, Getty Realty Corp currently has a 12-month trailing dividend yield of 6.05% and a 12-month forward dividend yield of 6.13%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Getty Realty Corp's annual dividend growth rate was 5.30%. Extended to a five-year horizon, this rate increased to 7.10% per year. Over the past decade, Getty Realty Corp's annual dividends per share growth rate stands at an impressive 12.60%.
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 2023-06-30, Getty Realty Corp's dividend payout ratio is 1.21, which may suggest that the company's dividend may not be sustainable.
Getty Realty Corp's profitability rank of 8 out of 10 suggests 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
Getty Realty Corp's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicates a strong revenue model. Getty Realty Corp's revenue has increased by approximately 1.10% per year on average, a rate that outperforms approximately 51.02% 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, Getty Realty Corp's earnings increased by approximately 16.50% per year on average, a rate that outperforms approximately 68.11% of global competitors.
The company's 5-year EBITDA growth rate of 8.30% outperforms approximately 62.41% of global competitors.
Conclusion
While Getty Realty Corp's dividends show a strong growth rate and high yield, the sustainability of these dividends is a concern due to the high payout ratio. However, the company's strong profitability and growth metrics indicate a positive outlook. Investors should keep a close eye on these factors while considering the company's future dividends.
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