Service Properties Trust said on July 13, 2023 that its board declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Previously, the company paid $0.20 per share.
Shareholders of record as of July 24, 2023 will receive payment on August 17, 2023.
At the current share price of $8.99/share, the dividend yield of the stock is 8.90%.
Looking back five years and taking a sample each week, the average dividend yield was 5.70%, the low 0.27% and the high 47.89%. The standard deviation of returns is 7.49 (n=236).
The current dividend yield is 0.43 standard deviation above the historical average.
Additionally, the company’s dividend payout ratio is 9.88. The payout ratio tells us how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into a payout ratio of zero to 0.5.
The company’s 3-year dividend growth rate is 19.00%, demonstrating that it has increased its dividend over time.
What is fund sentiment?
There are 533 funds or institutions reporting positions in Service Properties Trust. This is an increase of 34 owner(s) or 6.81% in the last quarter. Average portfolio weight of all funds dedicated to SVC is 0.16%, an increase of 100.94%. The total number of shares held by institutions has increased over the past three months by 0.80% to 147,202,000 shares. SVC’s put/call ratio is 0.51, indicating a bullish outlook.
Analysts’ price forecast suggests a 21.97% rise
As of July 6, 2023, the one-year average price target for Service Properties Trust was 10.96. The forecast ranges from a low of 8.58 to a high of $13.65. The average price target represents a 21.97% increase from its last published closing price of 8.99.
Check out our ranking of companies with the biggest upward price target.
The forecast annual turnover for Service Properties Trust is 1,869 million, a decrease of 1.55%. Projected annual non-GAAP EPS is -0.73.
What are the other shareholders doing?
IJR – iShares Core S&P Small-Cap ETF holds 12,067,000 shares representing 7.29% ownership of the company. In its previous filing, the company said it held 12,347,000 shares, representing a decrease by 2.32%. The company increase its SVC portfolio allocation of 29.75% over the last quarter.
VGSIX – Vanguard Real Estate Index Fund Investor Shares owns 7,271,000 shares representing 4.39% ownership of the company. In its previous filing, the company said it held 7,368,000 shares, representing a decrease by 1.34%. The company increase its SVC portfolio allocation of 7.63% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares owns 5,072,000 shares representing 3.07% ownership of the company. In its previous filing, the company stated that it holds 5,051,000 shares, representing a raise by 0.42%. The company increase its SVC portfolio allocation of 26.69% over the last quarter.
NAESX – Vanguard Small-Cap Index Fund Investor Shares owns 4,334,000 shares representing 2.62% ownership of the company. In its previous filing, the company stated that it holds 4,263,000 shares, representing a raise 1.65%. The company increase its SVC portfolio allocation of 33.33% over the last quarter.
Lsv Asset Management holds 3,993,000 shares representing 2.41% of the ownership of the company. In its previous filing, the company said it held 3,837,000 shares, representing a raise of 3.91%. The company increase its SVC portfolio allocation of 44.61% over the last quarter.
Background Information Approval Service Properties
(This description is provided by the company.)
Service Properties Trust is a real estate investment trust that owns a diversified portfolio of hotels, net rental services and necessity-based retail properties in the United States, Puerto Rico and Canada. SVC properties are operated by third parties under management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company headquartered in Newton, Massachusetts.
- THIRD AMENDED AND RESTATED CREDIT AGREEMENT Dated June 29, 2023 by and between SERVICE PROPERTIES TRUST,
- AGREEMENT TO ASSUME INCREMENTAL RENEWABLE COMMITMENTS
- AMENDED AND REFORMED PLEDGE AGREEMENT
- SERVICE PROPERTIES TRUST SECOND RULES AMENDED AND UPDATED As of June 13, 2023 TABLE OF CONTENTS
- SERVICE PROPERTIES TRUST SECOND AMENDED AND REFORMED REGULATIONS As amended and updated on September 7, 2016 and amended on April 20, 2017 and amended on April 12, 2018 and amended on April 3, 2019 and amended on September 23, 2019 As of June 13, 2023 1
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.