Prologis Inc's Dividend Analysis
Understanding the Dividend Profile of Prologis Inc
Prologis Inc (NYSE:PLD) recently announced a dividend of $0.96 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-15. 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 Prologis Inc's dividend performance and assess its sustainability.
What Does Prologis Inc Do?
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Prologis was formed by the June 2011 merger of AMB Property and Prologis Trust. The company develops, acquires, and operates around 1.2 billion square feet of high-quality industrial and logistics facilities across the globe. The company also has a strategic capital business segment that has around $60 billion of third-party AUM. The company is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust.
A Glimpse at Prologis Inc's Dividend History
Prologis Inc has maintained a consistent dividend payment record since 1997, with dividends currently distributed on a quarterly basis. Prologis Inc has increased its dividend each year since 2009. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Prologis Inc's Dividend Yield and Growth
As of today, Prologis Inc currently has a 12-month trailing dividend yield of 2.62% and a 12-month forward dividend yield of 2.88%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Prologis Inc's annual dividend growth rate was 14.50%. Extended to a five-year horizon, this rate decreased to 12.90% per year. And over the past decade, Prologis Inc's annual dividends per share growth rate stands at an impressive 11.00%.
Based on Prologis Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Prologis Inc stock as of today is approximately 4.81%.
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, Prologis Inc's dividend payout ratio is 1.35, which may suggest that the company's dividend may not be sustainable.