Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) Has Affirmed Its Dividend Of CA$0.0013

The board of Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) has announced that it will pay a dividend of CA$0.0013 per share on the 15th of August. This payment means that the dividend yield will be 2.5%, which is around the industry average.

See our latest analysis for Marwest Apartment Real Estate Investment Trust

Marwest Apartment Real Estate Investment Trust's Payment Has Solid Earnings Coverage

Solid dividend yields are great, but they only really help us if the payment is sustainable. Before making this announcement, Marwest Apartment Real Estate Investment Trust was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Unless the company can turn things around, EPS could fall by 56.5% over the next year. Assuming the dividend continues along recent trends, we believe the payout ratio could be 6.3%, which we are pretty comfortable with and we think is feasible on an earnings basis.

Marwest Apartment Real Estate Investment Trust Is Still Building Its Track Record

The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. There hasn't been much of a change in the dividend over the last 2 years. It's good to see at least some dividend growth. Yet with a relatively short dividend paying history, we wouldn't want to depend on this dividend too heavily.

The Dividend Has Limited Growth Potential

Investors could be attracted to the stock based on the quality of its payment history. However, things aren't all that rosy. Over the last year, Marwest Apartment Real Estate Investment Trust's EPS has fallen by 56%. Reduced dividend payments are a common consequence of declining earnings. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.

Our Thoughts On Marwest Apartment Real Estate Investment Trust's Dividend

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. We don't think Marwest Apartment Real Estate Investment Trust is a great stock to add to your portfolio if income is your focus.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 5 warning signs for Marwest Apartment Real Estate Investment Trust you should be aware of, and 2 of them are concerning. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.