Yahoo Finance Madison Pacific Properties (TSE:MPC) Has Affirmed Its Dividend Of CA$0.0525
Madison Pacific Properties Inc.'s (TSE:MPC) investors are due to receive a payment of CA$0.0525 per share on 6th of September. This means the annual payment is 1.7% of the current stock price, which is above the average for the industry.
See our latest analysis for Madison Pacific Properties
Madison Pacific Properties' Earnings Easily Cover The Distributions
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, prior to this announcement, Madison Pacific Properties' dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.
Looking forward, earnings per share could rise by 2.0% over the next year if the trend from the last few years continues. If the dividend continues on this path, the payout ratio could be 11% by next year, which we think can be pretty sustainable going forward.
Madison Pacific Properties Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The most recent annual payment of CA$0.105 is about the same as the annual payment 10 years ago. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.
Madison Pacific Properties May Find It Hard To Grow The Dividend
Investors could be attracted to the stock based on the quality of its payment history. However, Madison Pacific Properties' EPS was effectively flat over the past five years, which could stop the company from paying more every year. While EPS growth is quite low, Madison Pacific Properties has the option to increase the payout ratio to return more cash to shareholders.
We Really Like Madison Pacific Properties' Dividend
Overall, we like to see the dividend staying consistent, and we think Madison Pacific Properties might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 2 warning signs for Madison Pacific Properties (1 can't be ignored!) that you should be aware of before investing. Is Madison Pacific Properties not quite the opportunity you were looking for? Why not check out our selection of top 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.
