Assessing the Sustainability of Brixmor Property Group Inc's Dividend
Brixmor Property Group Inc (BRX, Financial) recently announced a dividend of $0.27 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-04-01. 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 Brixmor Property Group Inc's dividend performance and assess its sustainability.
What Does Brixmor Property Group Inc Do?
Brixmor Property Group Inc is a real estate investment trust based in the United States. The company owns and operates a portfolio of grocery-anchored community and neighborhood shopping centers across the United States. It leases its rentable areas to retailers, restaurants, theatres, entertainment venues, and fitness centers, with the company's tenants consisting of large department stores, discount retailers, and grocery stores. The company is an internally managed REIT. The company operates in Florida, Texas, California, New York, Pennsylvania, Illinois, New Jersey, Georgia, North Carolina, Michigan, Ohio and other states.
A Glimpse at Brixmor Property Group Inc's Dividend History
Brixmor Property Group Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Brixmor Property Group Inc's Dividend Yield and Growth
As of today, Brixmor Property Group Inc currently has a 12-month trailing dividend yield of 4.49% and a 12-month forward dividend yield of 4.65%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Brixmor Property Group Inc's annual dividend growth rate was 28.20%. Extended to a five-year horizon, this rate decreased to -0.20% per year. And over the past decade, Brixmor Property Group Inc's annual dividends per share growth rate stands at 9.40%.
Based on Brixmor Property Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Brixmor Property Group Inc stock as of today is approximately 4.45%.
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 2023-12-31, Brixmor Property Group Inc's dividend payout ratio is 1.21, which may suggest that the company's dividend may not be sustainable.
Brixmor Property Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Brixmor Property Group Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Brixmor Property Group Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Brixmor Property Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Brixmor Property Group Inc's revenue has increased by approximately 5.20% per year on average, a rate that outperforms approximately 58.21% 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, Brixmor Property Group Inc's earnings increased by approximately 25.50% per year on average, a rate that outperforms approximately 75.82% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 1.30%, which outperforms approximately 46.61% of global competitors.
Concluding Insights on Brixmor Property Group Inc's Dividend Profile
While Brixmor Property Group Inc's dividend yield and historical growth rates paint an attractive picture for income-focused investors, considerations such as the payout ratio and profitability must be weighed. The high dividend payout ratio may raise concerns about the long-term sustainability of the dividend, despite the company's strong profitability rank. However, the growth metrics, including revenue per share and EPS growth rate, offer a positive outlook for Brixmor Property Group Inc's ability to maintain its dividend payments. Investors should keep an eye on these indicators to ensure they align with their investment strategy. For those seeking high-dividend yield stocks, GuruFocus Premium users can screen for attractive options 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.
