Atrium Mortgage Investment (TSE:AI) pays dividend of CA$0.075

Atrium Mortgage Investment Corporation (Tokyo Stock Exchange: AI) pays a dividend of CA$0.075 on December 13th. Based on this payment, the company’s shares will yield a dividend yield of 9.3%, an attractive boost for shareholder returns.

Our analysis AI can be underestimated.

Atrium Mortgage Investment dividend expected to be well covered by earnings

Big dividend yields for a few years mean nothing if you can’t sustain it.

Atrium Mortgage Investment is a well-established dividend-paying company with a history of more than a decade of sharing earnings with shareholders. Atrium Mortgage Investment’s latest earnings report shows a decent payout ratio of 91%, meaning the company can afford to pay its dividend with a bit more leeway.

Over the next three years, EPS is projected to expand by 6.6%. Analysts estimate that future payout percentages could reach 88% over the same period.

TSX:AI Historic Dividend Nov 7, 2022

Dividend volatility

The company has a volatile dividend history, cutting it at least once in the past decade. Dividends have increased from an annual total of $0.83 in 2012 to a recent annual total of $0.97. This means that we have grown the distribution at 1.6% per annum during that time. A modest increase in dividends is good, but we believe this will be offset by a historic reduction in payouts. If your company’s earnings aren’t stable, it’s hard to live on dividend income.

Dividend growth may be difficult to achieve

With dividends relatively volatile, it’s even more important to see if earnings per share are increasing. Atrium Mortgage Investments has shown no significant change in earnings per share over the past five years. Slow growth and high payout rates could mean that Atrium Mortgage Investment has exhausted what it was able to pay its shareholders. That’s fine, but we’re not very enthusiastic about this as it often indicates that future dividend growth may slow down.

Our Thoughts on the Atrium Mortgage Investment Dividend

In summary, it’s good that the dividend hasn’t been cut, but I’m a little cautious about the Atrium Mortgage Investments payouts, as there may be some issues with sustaining payouts going forward. Payouts are a little high to be considered sustainable and track record is not the best. If income is your focus, I don’t think Atrium Mortgage Investment is the best stock to add to your portfolio.

Market movements prove how much a consistent dividend policy is valued compared to an unpredictable dividend policy. However, there are other considerations for investors when analyzing stock performance. for example, Two warning signs for Atrium Mortgage Investment What investors should know before investing in this stock.Looking for higher yielding dividend ideas? Try us A collection of powerful dividend payers.

Valuation is complicated, but we’re here to help make it simple.

find out if atrium mortgage investment You may be overestimated or underestimated by checking out our comprehensive analysis including: Fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …

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