Logistri Fastighets' (NGM:LOGIST) Dividend Will Be SEK1.30

Logistri Fastighets AB (publ)'s (NGM:LOGIST) investors are due to receive a payment of SEK1.30 per share on 1st of July. This means that the annual payment will be 3.6% of the current stock price, which is in line with the average for the industry.

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Logistri Fastighets' Future Dividend Projections Appear Well Covered By Earnings

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. The last dividend was quite easily covered by Logistri Fastighets' earnings. This means that a large portion of its earnings are being retained to grow the business.

EPS is set to fall by 14.1% over the next 12 months if recent trends continue. Assuming the dividend continues along recent trends, we believe the payout ratio could be 53%, which we are pretty comfortable with and we think is feasible on an earnings basis.

Check out our latest analysis for Logistri Fastighets

Logistri Fastighets' Dividend Has Lacked Consistency

It's comforting to see that Logistri Fastighets has been paying a dividend for a number of years now, however it has been cut at least once in that time. This suggests that the dividend might not be the most reliable. Since 2018, the annual payment back then was SEK9.00, compared to the most recent full-year payment of SEK5.20. Doing the maths, this is a decline of about 7.5% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.

The Dividend Has Limited Growth Potential

With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. Over the past five years, it looks as though Logistri Fastighets' EPS has declined at around 14% a year. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future.

Our Thoughts On Logistri Fastighets' Dividend

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. This company is not in the top tier of income providing stocks.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 5 warning signs for Logistri Fastighets (of which 2 can't be ignored!) you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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