In This Article:
Understanding PSP Swiss Property AG's Dividend Payout and Growth Prospects
PSP Swiss Property AG(PSPSY) recently announced a dividend of $0.84 per share, payable on 2024-04-24, with the ex-dividend date set for 2024-04-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into PSP Swiss Property AG's dividend performance and assess its sustainability.
What Does PSP Swiss Property AG Do?
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PSP Swiss Property AG is a general real estate company. The company reports three business units: real estate investments, property management, and holding. The vast majority of revenue is generated by rental income. All PSP property is located in Switzerland. The company considers merger and acquisition investment as a potential component of its operational growth strategy. The company's real estate investment segment invests exclusively in commercial properties, with leases primarily in office and retail property.
A Glimpse at PSP Swiss Property AG's Dividend History
PSP Swiss Property AG has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. PSP Swiss Property AG has increased its dividend each year since -, which qualifies it as a dividend king, a title reserved for companies that have consistently raised their dividends for at least the past 2024 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down PSP Swiss Property AG's Dividend Yield and Growth
As of today, PSP Swiss Property AG currently has a 12-month trailing dividend yield of 3.44% and a 12-month forward dividend yield of 3.38%. This suggests an expectation of a slight decrease in dividend payments over the next 12 months. Over the past three years, PSP Swiss Property AG's annual dividend growth rate was 1.80%. Extended to a five-year horizon, this rate increased to 2.20% per year. And over the past decade, PSP Swiss Property AG's annual dividends per share growth rate stands at 1.80%. Based on PSP Swiss Property AG's dividend yield and five-year growth rate, the 5-year yield on cost of PSP Swiss Property AG stock as of today is approximately 3.84%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, PSP Swiss Property AG's dividend payout ratio is 0.85, which may suggest that the company's dividend may not be sustainable. PSP Swiss Property AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PSP Swiss Property AG's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.