Marwest Apartment Real Estate Investment Trust's (CVE:MAR.UN) Dividend Will Be CA$0.0013

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. Based on this payment, the dividend yield for the company will be 1.9%, which is fairly typical for the industry.

View our latest analysis for Marwest Apartment Real Estate Investment Trust

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

Unless the payments are sustainable, the dividend yield doesn't mean too much. However, prior to this announcement, Marwest Apartment Real Estate Investment Trust's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

If the trend of the last few years continues, EPS will grow by 28.7% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 1.8%, 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. 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.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Earnings have grown by 29% in the last year. Rising earnings will make it easier for the company to keep paying dividends, and possibly even increase them. 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.

We Really Like Marwest Apartment Real Estate Investment Trust's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. 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. For example, we've identified 4 warning signs for Marwest Apartment Real Estate Investment Trust (1 is a bit unpleasant!) that you should be aware of before investing. Is Marwest Apartment Real Estate Investment Trust not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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