Madison Pacific Properties (TSE:MPC) Has Affirmed Its Dividend Of CA$0.0525

Madison Pacific Properties Inc. (TSE:MPC) has announced that it will pay a dividend of CA$0.0525 per share on the 6th of September. The dividend yield will be 1.7% based on this payment which is still above the industry average.

View our latest analysis for Madison Pacific Properties

Madison Pacific Properties' Earnings Easily Cover The Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, Madison Pacific Properties' earnings easily 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 2.0% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 11%, which is in the range that makes us comfortable with the sustainability of the dividend.

Madison Pacific Properties Has A Solid Track Record

The company has an extended history of paying stable dividends. The last annual payment of CA$0.105 was flat on the annual payment from10 years ago. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

Madison Pacific Properties May Find It Hard To Grow The Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Madison Pacific Properties hasn't seen much change in its earnings per share over the last five years. If Madison Pacific Properties is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

Madison Pacific Properties 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. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

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. For example, we've identified 2 warning signs for Madison Pacific Properties (1 makes us a bit uncomfortable!) that you should be aware of before investing. 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.