An In-Depth Look at GLPI's Dividend History, Yield, Growth, and Sustainability
Gaming and Leisure Properties Inc(GLPI, Financial) recently announced a dividend of $0.73 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. 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 Gaming and Leisure Properties Incs dividend performance and assess its sustainability.
What Does Gaming and Leisure Properties Inc Do?
Gaming and Leisure Properties Inc, or GLP, is a real estate investment property trust primarily involved in the leasing of gaming and related facilities to wholly-owned subsidiaries of Penn National Gaming, or Penn, throughout the U.S. GLP segments its operations into GLP Capital and TRS Properties divisions. The company derives the vast majority of its revenue from its GLP Capital unit in the form of rental income from dockside and land-based casinos located mostly in the American Midwest. Almost all of GLP Capital's leases are long-term agreements that give Penn the option for future extensions. Gaming revenue generated by TRS Properties, which encompasses the operations of Hollywood Casino Perryville and Hollywood Casino Baton Rouge, also represents a significant income stream for GLP.
A Glimpse at Gaming and Leisure Properties Inc's Dividend History
Gaming and Leisure Properties 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 Gaming and Leisure Properties Inc's Dividend Yield and Growth
As of today, Gaming and Leisure Properties Inc currently has a 12-month trailing dividend yield of 5.90% and a 12-month forward dividend yield of 5.95%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Gaming and Leisure Properties Inc's annual dividend growth rate was 0.80%. Extended to a five-year horizon, this rate increased to 1.70% per year. Based on Gaming and Leisure Properties Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Gaming and Leisure Properties Inc stock as of today is approximately 6.42%.
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 2023-06-30, Gaming and Leisure Properties Inc's dividend payout ratio is 0.98, suggesting that the company's dividend may not be sustainable.
Gaming and Leisure Properties Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Gaming and Leisure Properties 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.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Gaming and Leisure Properties 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 Gaming and Leisure Properties Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Gaming and Leisure Properties Inc's revenue has increased by approximately -1.10% per year on average, a rate that underperforms than approximately 62.4% 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, Gaming and Leisure Properties Inc's earnings increased by approximately 14.30% per year on average, a rate that underperforms than approximately 34.02% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.10%, which underperforms than approximately 33.79% of global competitors.
Conclusion
While Gaming and Leisure Properties Inc's dividend payments and growth rate are promising, its high payout ratio raises concerns about the sustainability of its dividends. However, the company's solid profitability and growth metrics may provide some reassurance. Investors should closely monitor these factors and consider their risk tolerance and investment objectives before investing.
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