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Why You Might Be Interested In Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) For Its Upcoming Dividend
Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Marwest Apartment Real Estate Investment Trust investors that purchase the stock on or after the 31st of January will not receive the dividend, which will be paid on the 18th of February.
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 has a trailing yield of 2.3% on the current stock price of CA$0.68. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
See our latest analysis for Marwest Apartment Real Estate Investment Trust
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Marwest Apartment Real Estate Investment Trust has a low and conservative payout ratio of just 0.8% of its income after tax.
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.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. 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.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. 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.
The Bottom Line
Has Marwest Apartment Real Estate Investment Trust got what it takes to maintain its dividend payments? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. In summary, Marwest Apartment Real Estate Investment Trust appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
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. Our analysis shows 3 warning signs for Marwest Apartment Real Estate Investment Trust that we strongly recommend you have a look at before investing in the company.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.
About TSXV:MAR.UN
Marwest Apartment Real Estate Investment Trust
Marwest Apartment Real Estate Investment Trust (the "REIT") is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust dated July 2, 2020, which was amended and restated on April 30, 2021.
Good value with proven track record.