Yahoo Finance CapitaLand Ascott Trust's Dividend Analysis
Delving into the Dividend Dynamics of CapitaLand Ascott Trust (ATTRF)
CapitaLand Ascott Trust (ATTRF) recently announced a dividend of $0.03 per share, payable on 2024-02-29, with the ex-dividend date set for 2024-02-05. 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 CapitaLand Ascott Trust's dividend performance and assess its sustainability.
What Does CapitaLand Ascott Trust Do?
Warning! GuruFocus has detected 10 Warning Signs with ATTRF.
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CapitaLand Ascott Trust, or CLAS, is a hospitality trust focusing on serviced residences, hotels, rental housing, and student accommodation. As of Dec. 31, 2023, the trust has a SGD 8.7-billion portfolio, consisting of 106 properties with more than 19,000 units in 45 cities across 16 countries globally. Its main markets include the United States, France, Japan, Singapore, the United Kingdom, Vietnam, China, and Australia. The trust is a stapled unit comprising CapitaLand Ascott REIT, which is managed by manager CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust, which is managed by trustee-manager CapitaLand Ascott Business Trust Management Pte. Ltd. Sponsor CapitaLand Investments Limited, owns around a 39% stake in CLAS.
A Glimpse at CapitaLand Ascott Trust's Dividend History
CapitaLand Ascott Trust has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down CapitaLand Ascott Trust's Dividend Yield and Growth
As of today, CapitaLand Ascott Trust currently has a 12-month trailing dividend yield of 3.83% and a 12-month forward dividend yield of 9.48%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, CapitaLand Ascott Trust's annual dividend growth rate was -24.00%. Extended to a five-year horizon, this rate increased to -14.90% per year. And over the past decade, CapitaLand Ascott Trust's annual dividends per share growth rate stands at -8.60%.
Based on CapitaLand Ascott Trust's dividend yield and five-year growth rate, the 5-year yield on cost of CapitaLand Ascott Trust stock as of today is approximately 1.71%.
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, CapitaLand Ascott Trust's dividend payout ratio is 0.88, which may suggest that the company's dividend may not be sustainable.
CapitaLand Ascott Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CapitaLand Ascott Trust's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. CapitaLand Ascott Trust'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 CapitaLand Ascott Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CapitaLand Ascott Trust's revenue has increased by approximately -7.80% per year on average, a rate that underperforms approximately 83.13% 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, CapitaLand Ascott Trust's earnings increased by approximately -11.80% per year on average, a rate that underperforms approximately 73.68% of global competitors.
Next Steps in Dividend Evaluation
Considering CapitaLand Ascott Trust's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors should weigh these factors carefully. While the dividend yield is attractive, the negative growth rates and payout ratio raise questions about long-term sustainability. It is crucial for investors to monitor the company's future performance, especially in terms of profitability and revenue growth, to make an informed decision about the reliability of its dividend payments. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener for more insights.
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.
This article first appeared on GuruFocus.
