There's A Lot To Like About Marwest Apartment Real Estate Investment Trust's (CVE:MAR.UN) Upcoming CA$0.0013 Dividend

Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Marwest Apartment Real Estate Investment Trust's shares on or after the 29th of November, you won't be eligible to receive the dividend, when it is paid on the 16th of December.

The company's upcoming dividend is CA$0.0013 a share, following on from the last 12 months, when the company distributed a total of CA$0.016 per share to shareholders. Based on the last year's worth of payments, Marwest Apartment Real Estate Investment Trust stock has a trailing yield of around 2.0% on the current share price of CA$0.79. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Marwest Apartment Real Estate Investment Trust has been able to grow its dividends, or if the dividend might be cut.

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

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Marwest Apartment Real Estate Investment Trust paid out just 0.8% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see how much of its profit Marwest Apartment Real Estate Investment Trust paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's comforting to see Marwest Apartment Real Estate Investment Trust's earnings have been skyrocketing, up 67% per annum for the past three years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Marwest Apartment Real Estate Investment Trust has delivered 1.3% dividend growth per year on average over the past three years. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth.

To Sum It Up

From a dividend perspective, should investors buy or avoid Marwest Apartment Real Estate Investment Trust? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. We think this is a pretty attractive combination, and would be interested in investigating Marwest Apartment Real Estate Investment Trust more closely.

In light of that, while Marwest Apartment Real Estate Investment Trust has an appealing dividend, it's worth knowing the risks involved with this stock. We've identified 3 warning signs with Marwest Apartment Real Estate Investment Trust (at least 1 which shouldn't be ignored), and understanding them should be part of your investment process.

If you're in the market for strong dividend payers, we recommend checking 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.