Unpacking the Dividend History, Yield, Growth, and Future Prospects of Prologis Inc
Prologis Inc (PLD, Financial) recently announced a dividend of $0.87 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-15. 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 Prologis Inc's dividend performance and assess its sustainability.
About Prologis Inc
Prologis was formed by the June 2011 merger of AMB Property and Prologis Trust. The company develops, acquires, and operates around 1.2 billion square feet of high-quality industrial and logistics facilities across the globe. The company also has a strategic capital business segment that has around $60 billion of third-party AUM. The company is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust.
Prologis Inc's Dividend History
Prologis Inc has maintained a consistent dividend payment record since 1997. Dividends are currently distributed on a quarterly basis. Prologis Inc has increased its dividend each year since 2009. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Prologis Inc's Dividend Yield and Growth
As of today, Prologis Inc currently has a 12-month trailing dividend yield of 2.70% and a 12-month forward dividend yield of 2.82%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Prologis Inc's annual dividend growth rate was 14.20%. Extended to a five-year horizon, this rate decreased to 11.60% per year. And over the past decade, Prologis Inc's annual dividends per share growth rate stands at an impressive 10.40%.
Based on Prologis Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Prologis Inc stock as of today is approximately 4.67%.
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, Prologis Inc's dividend payout ratio is 0.90.
Prologis Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Prologis 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.
Examining Growth Metrics for Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Prologis Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Prologis Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Prologis Inc's revenue has increased by approximately 13.10% per year on average, a rate that outperforms than approximately 88.01% 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, Prologis Inc's earnings increased by approximately 20.00% per year on average, a rate that outperforms than approximately 70.99% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 7.10%, which outperforms than approximately 58.62% of global competitors.
Conclusion
In conclusion, Prologis Inc presents a compelling case for investors seeking steady dividends. With a consistent dividend payment history, promising yield and growth rates, and robust profitability and growth metrics, the company appears well-positioned to sustain its dividends in the long run. However, investors should keep an eye on the relatively high payout ratio, which could pose a risk to dividend sustainability in case of unexpected downturns. GuruFocus Premium users interested in high-dividend yield stocks can further explore using the High Dividend Yield Screener.
