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

Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) will pay a dividend of CA$0.0013 on the 17th of March. This makes the dividend yield 2.3%, which will augment investor returns quite nicely.

Check out our latest analysis for Marwest Apartment Real Estate Investment Trust

Marwest Apartment Real Estate Investment Trust's Payment Could Potentially Have Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, Marwest Apartment Real Estate Investment Trust was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

EPS is set to fall by 4.1% over the next 12 months if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio could be 1.8%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.

Marwest Apartment Real Estate Investment Trust Doesn't Have A Long Payment History

Looking back, the dividend has been stable, but the company hasn't been paying a dividend for very long so we can't be confident that the dividend will remain stable through all economic environments. The dividend has gone from an annual total of CA$0.015 in 2022 to the most recent total annual payment of CA$0.0156. This means that it has been growing its distributions at 1.3% per annum over that time. Marwest Apartment Real Estate Investment Trust hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

Dividend Growth May Be Hard To Achieve

The company's investors will be pleased to have been receiving dividend income for some time. However, initial appearances might be deceiving. It's not great to see that Marwest Apartment Real Estate Investment Trust's earnings per share has fallen at approximately 4.1% per year over the past three years. A modest decline in earnings isn't great, and it makes it quite unlikely that the dividend will grow in the future unless that trend can be reversed.

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

Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We would be a touch cautious of relying on this stock primarily for the dividend income.

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. To that end, Marwest Apartment Real Estate Investment Trust has 3 warning signs (and 2 which don't sit too well with us) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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