Understanding PSP Swiss Property AG's Dividend Payout and Growth Prospects
PSP Swiss Property AG(PSPSY, Financial) recently announced a dividend of $0.84 per share, payable on 2024-04-24, with the ex-dividend date set for 2024-04-19. 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 PSP Swiss Property AG's dividend performance and assess its sustainability.
What Does PSP Swiss Property AG Do?
PSP Swiss Property AG is a general real estate company. The company reports three business units: real estate investments, property management, and holding. The vast majority of revenue is generated by rental income. All PSP property is located in Switzerland. The company considers merger and acquisition investment as a potential component of its operational growth strategy. The company's real estate investment segment invests exclusively in commercial properties, with leases primarily in office and retail property.
A Glimpse at PSP Swiss Property AG's Dividend History
PSP Swiss Property AG has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. PSP Swiss Property AG has increased its dividend each year since -, which qualifies it as a dividend king, a title reserved for companies that have consistently raised their dividends for at least the past 2024 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down PSP Swiss Property AG's Dividend Yield and Growth
As of today, PSP Swiss Property AG currently has a 12-month trailing dividend yield of 3.44% and a 12-month forward dividend yield of 3.38%. This suggests an expectation of a slight decrease in dividend payments over the next 12 months. Over the past three years, PSP Swiss Property AG's annual dividend growth rate was 1.80%. Extended to a five-year horizon, this rate increased to 2.20% per year. And over the past decade, PSP Swiss Property AG's annual dividends per share growth rate stands at 1.80%. Based on PSP Swiss Property AG's dividend yield and five-year growth rate, the 5-year yield on cost of PSP Swiss Property AG stock as of today is approximately 3.84%.
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 2023-12-31, PSP Swiss Property AG's dividend payout ratio is 0.85, which may suggest that the company's dividend may not be sustainable. PSP Swiss Property AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PSP Swiss Property AG's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. PSP Swiss Property AG's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and PSP Swiss Property AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PSP Swiss Property AG's revenue has increased by approximately 2.40% per year on average, a rate that underperforms approximately 57.43% 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, PSP Swiss Property AG's earnings increased by approximately -10.70% per year on average, a rate that underperforms approximately 66.64% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -6.10%, which underperforms approximately 69.44% of global competitors.
Next Steps
When considering PSP Swiss Property AG's dividend payments, investors should weigh the company's consistent history of dividend payments against the current payout ratio, which may raise concerns about sustainability. The company's profitability and growth metrics present a mixed picture, with strong profitability but underperforming growth rates compared to global competitors. As PSP Swiss Property AG prepares to distribute its latest dividend, investors should consider these factors in their overall assessment of the stock's potential as a long-term income investment. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover new opportunities.
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.
