Unpacking UDR Inc's Dividend Performance: An In-depth Analysis

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Delving into the dividend history, yield, growth, and sustainability of UDR Inc (UDR, Financial)

UDR Inc (UDR) recently announced a dividend of $0.42 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-06. 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 UDR Inc's dividend performance and assess its sustainability.

A Brief Overview of UDR Inc

UDR Inc (UDR, Financial) is a real estate investment trust that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets located in the United States. The company has two reportable segments; Same-Store Communities segment represents those communities acquired, developed, and stabilized prior to January 1, 2021, and held as of December 31, 2022, and Non-Mature Communities/Other segment represents those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed-use properties. The company generates key revenue from Same-Store Communities.


Exploring UDR Inc's Dividend History

UDR Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.


Understanding UDR Inc's Dividend Yield and Growth

As of today, UDR Inc currently has a 12-month trailing dividend yield of 4.46% and a 12-month forward dividend yield of 4.69%. 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%. Extended to a five-year horizon, this rate increased to 10.70% per year. And over the past decade, UDR Inc's annual dividends per share growth rate stands at 5.00%. 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 7.41%.


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, UDR Inc's dividend payout ratio is 1.47, which may suggest that the company's dividend may not be sustainable.

UDR Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks UDR Inc's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.

Looking Ahead: Growth Metrics of UDR Inc

To ensure the sustainability of dividends, a company must have robust growth metrics. UDR Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. UDR Inc's revenue has increased by approximately 5.30% per year on average, a rate that outperforms approximately 70.05% 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, UDR Inc's earnings increased by approximately -25.50% per year on average, a rate that outperforms approximately 17.6% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -13.50%, which outperforms approximately 13.79% of global competitors.


In conclusion, UDR Inc's consistent dividend payments, impressive growth rates, and strong profitability rank make it an attractive option for investors seeking dividend income. However, its high payout ratio raises questions about the sustainability of its dividends in the long run. Therefore, investors should closely monitor the company's earnings and growth metrics to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.

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.


I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.