Assessing Dividend Sustainability and Future Outlook for Value Investors
Alpine Income Property Trust Inc(PINE, Financial) recently announced a dividend of $0.28 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-13. 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 Alpine Income Property Trust Inc's dividend performance and assess its sustainability.
Company Overview
Alpine Income Property Trust Inc is a real estate company. It owns and operates a portfolio of single-tenant commercial properties. The company's portfolio is comprised of single-tenant retail and office properties located in or in close proximity to MSAs, growth markets and other markets in the United States. The majority of the firm's revenue includes rental revenue derived from the ownership and leasing of property.
Dividend History
Alpine Income Property Trust Inc has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dividend Yield and Growth
As of today, Alpine Income Property Trust Inc currently has a 12-month trailing dividend yield of 6.44% and a 12-month forward dividend yield of 6.44%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Alpine Income Property Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Alpine Income Property Trust Inc stock as of today is approximately 6.44%.
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, Alpine Income Property Trust Inc's dividend payout ratio is 0.87. This may suggest that the company's dividend may not be sustainable.
Alpine Income Property Trust Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Alpine Income Property Trust Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Alpine Income Property Trust Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Conclusion
Alpine Income Property Trust Inc's consistent dividend payments, fair profitability, and growth outlook make it a potential candidate for value investors seeking stable returns. However, its high payout ratio may raise concerns about the sustainability of its dividends. Investors should thus closely monitor the company's earnings and growth metrics to make informed decisions.
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