An In-depth Analysis of CUZ's Dividend Performance and Sustainability
Cousins Properties Inc (CUZ, Financial) recently announced a dividend of $0.32 per share, payable on 2023-10-13, with the ex-dividend date set for 2023-10-03. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Cousins Properties Inc's dividend performance and assess its sustainability.
Understanding Cousins Properties Inc
Cousins Properties Inc is a real estate investment trust (REIT) primarily engaged in the ownership, management, and development of properties in the Southern United States. Cousins Properties' portfolio primarily comprises offices and mixed-use developments, with offices accounting for the vast majority of the total square footage. The company's assets are primarily located in Texas and Georgia, with North Carolina also hosting a smaller amount of rental space. The company derives nearly all of its revenue in the form of rental income from its properties, primarily from its office locations.
A Glimpse at Cousins Properties Inc's Dividend History
Cousins Properties Inc has maintained a consistent dividend payment record since 1985, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cousins Properties Inc's Dividend Yield and Growth
As of today, Cousins Properties Inc has a 12-month trailing dividend yield and a 12-month forward dividend yield of 6.39%. This suggests an expectation of identical dividend payments over the next 12 months. Over the past three years, Cousins Properties Inc's annual dividend growth rate was 3.30%. Over a five-year horizon, this rate increased to 5.90% per year. And over the past decade, Cousins Properties Inc's annual dividends per share growth rate stands at 4.40%.
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, Cousins Properties Inc's dividend payout ratio is 1.31, which may suggest that the company's dividend may not be sustainable. Cousins Properties Inc's profitability rank of 7 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
Cousins Properties Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its 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, Cousins Properties Inc's earnings increased by approximately -1.70% per year on average. The company's 5-year EBITDA growth rate of -0.30% outperforms approximately 33.68% of global competitors.
Conclusion
While Cousins Properties Inc's dividend yield and growth rate are impressive, the high payout ratio raises concerns about the sustainability of future dividends. However, the company's robust profitability and growth metrics provide some reassurance. Investors should closely monitor these factors while considering Cousins Properties Inc for their portfolios. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
