Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) Is Paying Out A 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 on the 16th of September, with investors receiving CA$0.0013 per share. Based on this payment, the dividend yield will be 1.8%, which is fairly typical for the industry.

See our latest analysis for Marwest Apartment Real Estate Investment Trust

Marwest Apartment Real Estate Investment Trust's Earnings Easily Cover The Distributions

We aren't too impressed by dividend yields unless they can be sustained over time. 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.

Over the next year, EPS could expand by 27.2% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 1.9%, which is in the range that makes us comfortable with the sustainability of the dividend.

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

The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 3 years, which isn't that long in the grand scheme of things. Since 2021, the annual payment back then was CA$0.015, compared to the most recent full-year payment of CA$0.0156. This implies that the company grew its distributions at a yearly rate of about 1.3% over that duration. Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. EPS has grown 27% over the last 12 months. The company could go on to pay a consistent dividend if earnings continue to rise. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.

Marwest Apartment Real Estate Investment Trust Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. 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 6 warning signs for Marwest Apartment Real Estate Investment Trust you should be aware of, and 3 of them are a bit 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.