Exploring the Dividend History, Yield, and Growth of Granite Point Mortgage Trust Inc
Granite Point Mortgage Trust Inc (GPMT, Financial) recently announced a dividend of $0.2 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-09-29. 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 Granite Point Mortgage Trust Incs dividend performance and assess its sustainability.
About Granite Point Mortgage Trust Inc
Granite Point Mortgage Trust Inc focuses on directly originating, investing in, and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. The company constructs its investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity, and diversification, and assesses each investment from a fundamental value perspective relative to other opportunities available in the market. It typically provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing, and a range of business plans, including lease-up, renovation, repositioning, and repurposing of the property.
Granite Point Mortgage Trust Inc's Dividend History
Granite Point Mortgage Trust Inc has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Granite Point Mortgage Trust Inc's Dividend Yield and Growth
As of today, Granite Point Mortgage Trust Inc currently has a 12-month trailing dividend yield of 16.99% and a 12-month forward dividend yield of 15.95%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Granite Point Mortgage Trust Inc's annual dividend growth rate was -17.30%. Extended to a five-year horizon, this rate increased to -3.80% per year.
Based on Granite Point Mortgage Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Granite Point Mortgage Trust Inc stock as of today is approximately 14.00%.
Assessing Dividend Sustainability: 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, Granite Point Mortgage Trust Inc's dividend payout ratio is 0.00.
Granite Point Mortgage Trust Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Granite Point Mortgage Trust Inc's profitability 3 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 6 years out of past 10 years.
Granite Point Mortgage Trust Inc's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Granite Point Mortgage Trust Inc's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Granite Point Mortgage Trust Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Granite Point Mortgage Trust Inc's revenue has increased by approximately -9.80% per year on average, a rate that underperforms than approximately 85.85% of global competitors.
Conclusion
While Granite Point Mortgage Trust Inc has a commendable dividend history, the current data suggests potential challenges in sustaining its dividends. The company's dividend growth rate, payout ratio, profitability rank, and growth metrics indicate possible headwinds. Investors must carefully consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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