Yahoo Finance Global Net Lease Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of GNL
Global Net Lease Inc (NYSE:GNL) recently announced a dividend of $0.35 per share, payable on 2024-01-16, with the ex-dividend date set for 2024-01-11. 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 Global Net Lease Inc's dividend performance and assess its sustainability.
What Does Global Net Lease Inc Do?
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Global Net Lease Inc is a real estate investment trust that manages a globally diversified portfolio of commercial real estate properties. The company is engaged in the ownership, management, operating, lease, acquisition, investment, and sale of the portfolio assets. Its real estate assets span the United States, the United Kingdom, Germany, the Netherlands, Belgium, Luxembourg, France, and Finland. The portfolio assets include office, industrial and distribution, retail, and other, with office buildings representing more than half of the properties.
A Glimpse at Global Net Lease Inc's Dividend History
Global Net Lease Inc has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Global Net Lease Inc's Dividend Yield and Growth
As of today, Global Net Lease Inc currently has a 12-month trailing dividend yield of 15.54% and a 12-month forward dividend yield of 14.18%. This suggests an expectation of decreased dividend payments over the next 12 months. Extended to a five-year horizon, this rate decreased to -6.10% per year. Based on Global Net Lease Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Global Net Lease Inc stock as of today is approximately 11.34%.
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 2023-09-30, Global Net Lease Inc's dividend payout ratio is 0.00.
Global Net Lease Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Global Net Lease Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 7 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. Global Net Lease Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Global Net Lease Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Global Net Lease Inc's revenue has increased by approximately 1.00% per year on average, a rate that underperforms approximately 50% of global competitors.
Next Steps
In conclusion, Global Net Lease Inc's upcoming dividend payment, consistent historical dividend performance, and substantial dividend yield position it as an attractive option for income-focused investors. However, the expectation of a decrease in dividend payments and a negative five-year growth rate may raise concerns about the long-term sustainability of its dividend. While the payout ratio and profitability rank indicate a level of financial health, the company's revenue growth appears modest when benchmarked against global competitors. Investors should consider these factors alongside their investment strategy and the broader market outlook. GuruFocus Premium users can screen for high-dividend yield stocks 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.
This article first appeared on GuruFocus.
