59.4 F
London
May 27, 2024
PI Global Investments
Real Estate

Bridgemarq Real Estate Services (TSE:BRE) Is Paying Out A Dividend Of CA$0.1125


Bridgemarq Real Estate Services Inc.’s (TSE:BRE) investors are due to receive a payment of CA$0.1125 per share on 29th of February. This means the annual payment is 10.0% of the current stock price, which is above the average for the industry.

View our latest analysis for Bridgemarq Real Estate Services

Bridgemarq Real Estate Services Doesn’t Earn Enough To Cover Its Payments

We like to see robust dividend yields, but that doesn’t matter if the payment isn’t sustainable. Before making this announcement, the company’s dividend was much higher than its earnings. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level.

Looking forward, EPS could fall by 0.6% if the company can’t turn things around from the last few years. Assuming the dividend continues along recent trends, we believe the payout ratio could reach 119%, which could put the dividend under pressure if earnings don’t start to improve.

TSX:BRE Historic Dividend January 21st 2024

Bridgemarq Real Estate Services Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2014, the annual payment back then was CA$1.1, compared to the most recent full-year payment of CA$1.35. This works out to be a compound annual growth rate (CAGR) of approximately 2.0% a year over that time. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

Dividend Growth May Be Hard To Achieve

Some investors will be chomping at the bit to buy some of the company’s stock based on its dividend history. However, things aren’t all that rosy. Although it’s important to note that Bridgemarq Real Estate Services’ earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time.

The Dividend Could Prove To Be Unreliable

In summary, while it’s good to see that the dividend hasn’t been cut, we are a bit cautious about Bridgemarq Real Estate Services’ payments, as there could be some issues with sustaining them into the future. In the past the payments have been stable, but we think the company is paying out too much for this to continue for the long term. We would be a touch cautious of relying on this stock primarily for the dividend income.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Just as an example, we’ve come across 5 warning signs for Bridgemarq Real Estate Services you should be aware of, and 4 of them are potentially serious. Is Bridgemarq Real Estate Services not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Valuation is complex, but we’re helping make it simple.

Find out whether Bridgemarq Real Estate Services is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.



Source link

Related posts

Moffat County real estate transactions total more than $2M in December

D.William

The rise of Thane as an ideal hub for real estate investments

D.William

Arabisk Development celebrates achieving the highest real estate sales during the past year

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.