Assessing the Dividend Profile of Physicians Realty Trust
Physicians Realty Trust (DOC, Financial) recently announced a dividend of $0.23 per share, payable on 2024-01-18, with the ex-dividend date set for 2024-01-02. 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 look into Physicians Realty Trust's dividend performance and assess its sustainability.
What Does Physicians Realty Trust Do?
Physicians Realty Trust is a company belonging to the United States healthcare sector. It acquires, develops, and leases healthcare properties to physicians, hospitals, and healthcare delivery systems. Its portfolio includes medical office buildings, outpatient treatment and diagnostic facilities, physician group practice clinics, ambulatory surgery centres, and specialty hospitals. The company also alternatively invests in life science facilities, senior housing properties, skilled nursing facilities, and treatment centers.
A Glimpse at Physicians Realty Trust's Dividend History
Physicians Realty Trust has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Physicians Realty Trust's Dividend Yield and Growth
As of today, Physicians Realty Trust currently has a 12-month trailing dividend yield of 6.91% and a 12-month forward dividend yield of 6.91%. This suggests an expectation of the same dividend payments over the next 12 months. Extended to a five-year horizon, this rate increased to 0.10% per year. Based on Physicians Realty Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Physicians Realty Trust stock as of today is approximately 6.96%.
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 2023-09-30, Physicians Realty Trust's dividend payout ratio is 4.60, which may suggest that the company's dividend may not be sustainable.
Physicians Realty Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Physicians Realty Trust's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Physicians Realty Trust's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Physicians Realty Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Physicians Realty Trust's revenue has increased by approximately 0.50% per year on average, a rate that underperforms approximately 53.09% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.20%, which underperforms approximately 49% of global competitors.
Next Steps
Physicians Realty Trust's consistent dividend payments, a high trailing yield, and a modest growth rate present a mixed picture for value investors. The payout ratio raises questions about the long-term sustainability of the dividends, while the profitability and growth metrics provide some reassurance. Investors should weigh these factors in the context of their individual investment strategies and the overall performance of the healthcare real estate sector. For those seeking high-dividend yield stocks, GuruFocus Premium users can screen for attractive options using the High Dividend Yield Screener. As Physicians Realty Trust continues to navigate the complexities of healthcare real estate, will its dividend policy adjust to reflect its growth and profitability? This remains a key consideration for investors monitoring DOC's dividend prospects.
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.
