Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) will pay a dividend of CA$0.0013 on the 15th of May. This means that the annual payment will be 1.7% of the current stock price, which is in line with the average for the industry.
See our latest analysis for Marwest Apartment Real Estate Investment Trust
Marwest Apartment Real Estate Investment Trust’s Payment Has Solid Earnings Coverage
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. However, prior to this announcement, Marwest Apartment Real Estate Investment Trust’s dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.
Over the next year, EPS could expand by 156.1% if recent trends continue. If the dividend continues on this path, the payout ratio could be 0.6% by next year, which we think can be pretty sustainable going forward.
Marwest Apartment Real Estate Investment Trust Is Still Building Its Track Record
The dividend has been pretty stable looking back, but the company hasn’t been paying one for very long. This makes it tough to judge how it would fare through a full economic cycle. The annual payment during the last 2 years was CA$0.015 in 2022, and the most recent fiscal year payment was CA$0.0153. Dividend payments have been growing, but very slowly over the period. It’s good to see at least some dividend growth. Yet with a relatively short dividend paying history, we wouldn’t want to depend on this dividend too heavily.
The Dividend Looks Likely To Grow
The company’s investors will be pleased to have been receiving dividend income for some time. Marwest Apartment Real Estate Investment Trust’s earnings per share is up 156% on last year. It’s nice to see earnings per share rising, but one year is too short a period to get excited about. Were this trend to continue, we’d be interested. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. We do note though, one year is too short a time to be drawing strong conclusions about a company’s future prospects.
Marwest Apartment Real Estate Investment Trust Looks Like A Great Dividend Stock
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Just as an example, we’ve come across 4 warning signs for Marwest Apartment Real Estate Investment Trust you should be aware of, and 1 of them is significant. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.