Assessing the Upcoming Dividend and Financial Health of Merlin Properties SOCIMI SA
Merlin Properties SOCIMI SA (MRPRF, Financial) recently announced a dividend of $0.20 per share, payable on 2023-12-12, with the ex-dividend date set for 2023-11-24. 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 Merlin Properties SOCIMI SA's dividend performance and assess its sustainability.
What Does Merlin Properties SOCIMI SA Do?
Merlin Properties SOCIMI SA is a Spain-based company engaged in the operation of a real estate investment trust (REIT). The company's primary focus is the acquisition, active management, operation, and selective rotation of quality commercial real estate assets in the "Core" and "Core-Plus" investment segments, primarily in Spain and to a lesser extent, in Portugal. Its portfolio is diversified across several types of assets, including office buildings, net lease properties, shopping centers, and logistics assets, with the office buildings segment being the most significant revenue generator.
A Glimpse at Merlin Properties SOCIMI SA's Dividend History
Merlin Properties SOCIMI SA has established a solid track record of dividend payments since 2015, with dividends currently distributed on a quarterly basis. The chart below illustrates the company's annual Dividends Per Share to help investors track historical trends.
Breaking Down Merlin Properties SOCIMI SA's Dividend Yield and Growth
As of today, Merlin Properties SOCIMI SA boasts a trailing dividend yield of 4.75% over the past 12 months and a forward dividend yield of 4.81%, indicating an anticipated increase in dividend payments over the next year. Over the past three years, the company's annual dividend growth rate has been an impressive 33.90%, although this rate slowed to 17.40% per year when looking at a five-year span. Considering the company's dividend yield and five-year growth rate, the 5-year yield on cost for Merlin Properties SOCIMI SA stock is approximately 10.59%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical metric for assessing dividend sustainability, as it indicates the portion of earnings allocated to dividends. A lower ratio suggests a company retains more earnings for growth and stability. Merlin Properties SOCIMI SA's dividend payout ratio stands at 0.00 as of 2023-09-30. Additionally, the company's profitability rank is 6 out of 10, reflecting fair profitability with a history of net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividend sustainability, robust growth metrics are essential. Merlin Properties SOCIMI SA's growth rank of 6 suggests a reasonable growth outlook. However, the company's revenue per share and 3-year revenue growth rate indicate a decline in revenue, underperforming approximately 76.62% of global competitors.
Next Steps
In conclusion, Merlin Properties SOCIMI SA's upcoming dividend payment, historical dividend growth, and current payout ratio present an attractive profile for income-focused investors. The company maintains fair profitability and growth prospects, although recent revenue trends warrant observation. Investors should consider these factors in conjunction with their investment strategy and risk tolerance. GuruFocus Premium users can further explore high-dividend yield opportunities 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.
