Three REITs That Recently Announced Dividend Hikes - One Now Yielding 6.9%
Portfolio Pulse from Ethan Roberts
Three REITs, CubeSmart (CUBE), Universal Health Realty Income Trust (UHT), and Essential Properties Realty Trust Inc. (EPRT), have announced increases in their quarterly dividends. CubeSmart raised its dividend by 4.1%, Universal Health Realty by a small increment, and Essential Properties Realty Trust by 1.8%. These increases reflect the companies' confidence in maintaining or growing earnings and revenue. However, CubeSmart was downgraded by Bank of America Securities in October due to weakening demand for self-storage facilities, despite beating FFO and revenue estimates in Q3. Universal Health Realty's high payout ratio may limit future dividend growth, while Essential Properties Realty Trust has a well-covered payout ratio and received recent Buy ratings from B.Riley Securities, Stifel, and Truist Securities.
December 08, 2023 | 4:36 pm
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NEUTRAL IMPACT
Universal Health Realty announced a slight dividend increase. It has a long history of dividend payments but faces a high payout ratio, which may restrict future increases.
The dividend increase is a positive sign, but the high payout ratio could be a concern for future growth. The stock price decline over the past years may also weigh on investor sentiment.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
CubeSmart announced a 4.1% dividend increase and has shown strong FFO growth. Despite a downgrade by Bank of America Securities, recent Q3 results beat estimates, leading to a share price recovery.
The dividend increase and strong Q3 performance suggest a positive outlook, which could attract investors despite the recent downgrade. The share price recovery post-Q3 results indicates market confidence.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Essential Properties Realty Trust increased its quarterly dividend by 1.8% and has a healthy payout ratio. It received Buy ratings from B.Riley Securities, Stifel, and Truist Securities.
The dividend increase and favorable analyst ratings could lead to positive investor sentiment. The well-covered payout ratio suggests sustainability of dividends, which is attractive to investors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85