LONDON, UK / ACCESSWIRE / January 10, 2018 / Active-Investors has a free review on Mid-America Apartment Communities, Inc. (NYSE: MAA) ("Mid-America Apartment") following the Company's announcement that it will begin trading ex-dividend on January 11, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on January 10, 2017. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on MAA:
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Dividend Declared
On December 05, 2017, Mid-America Apartment announced that its Board of Directors approved today a 6% increase in its common dividend rate for fiscal year 2018. This dividend increase will raise the annualized dividend payout to $3.69 per share of common stock, an increase of $0.21 per share from the prior dividend level. The Board of Directors also approved a quarterly dividend payment of $0.9225 per share of common stock to be paid on January 31, 2018, to shareholders of record on January 12, 2018.
Mid-America Apartment's indicated dividend represents a yield of 3.84% compared to the average dividend yield of 4.31% for the financial sector. This will be the 96th consecutive quarter the Company has paid a cash dividend on its shares of common stock. The cash dividend has never been reduced or suspended over this time frame.
Dividend Insights
Mid-America Apartment has a dividend payout ratio of 62.3%, which indicates that the Company distributes approximately $0.62 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Mid-America Apartment is forecasted to report earnings of $2.07 for the next year compared to the Company's annualized dividend of $3.69. One of the primary reasons for the difference between earnings and annualized dividend is that Mid-America Apartment is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, for the quarter ended September 30, 2017, net income available for Mid-America Apartment's common shareholders was $113.8 million, or $1.00 per diluted common share, compared to $84.3 million, or $1.12 per diluted common share, for the quarter ended September 30, 2016. On the other hand, for the quarter ended September 30, 2017, the Company's FFO was $176.2 million, or $1.50 per diluted common share and unit, or per share, compared to $117.3 million, or $1.47 per share, for the quarter ended September 30, 2016. The FFO indicates that the Company should be able to comfortably cover its dividend payout.
As of September 30, 2017, Mid-America Apartment had cash and cash equivalents of $47.85 million compared to $33.54 million available as of December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Mid-America Apartment
On January 04, 2018, Mid-America Apartment announced that the Company expects to release its fourth quarter 2017 results on January 31, 2018, after market close and will hold its fourth quarter conference call on February 01, 2018 at 9:00 a.m. Central Time. During the conference call, the Company's officers will review fourth quarter performance and conduct a question-and-answer session.
Stock Performance Snapshot
January 09, 2018 - At Tuesday's closing bell, Mid-America Apartment's stock dropped 1.52%, ending the trading session at $95.01.
Volume traded for the day: 643.91 thousand shares.
After yesterday's close, Mid-America Apartment's market cap was at $10.84 billion.
Price to Earnings (P/E) ratio was at 42.86.
The stock has a dividend yield of 3.88%.
The stock is part of the Financial sector, categorized under the REIT - Residential industry. This sector was up 0.2% at the end of the session.
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