July 25, 2025 a 02:46 am
BXP: Dividend Analysis - Boston Properties, Inc.
Boston Properties, Inc. has maintained a relatively stable dividend with a yield of 5.81% and a current dividend per share of $4.38. The company exhibits credibility with a 29-year history of dividend payments. However, the lack of recent growth highlights areas of concern regarding the potential for future dividend increases.
📊 Overview
The financial metrics presented reveal critical insights into the company’s dividend yield and payment history.
| Key Metric | Data |
|---|---|
| Sector | Real Estate |
| Dividend yield | 5.81% |
| Current dividend per share | 4.38 USD |
| Dividend history | 29 years |
| Last cut or suspension | None |
📈 Dividend History
A strong dividend history over 29 years underlines Boston Properties’ commitment to its shareholders. This long-term track record is a positive signal for potential investors seeking consistency in returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.96 |
| 2024 | 3.92 |
| 2023 | 3.92 |
| 2022 | 3.92 |
| 2021 | 3.92 |
📉 Dividend Growth
The dividend growth rate for Boston Properties is stagnant over both a three and a five-year measurement period.
| Time | Growth |
|---|---|
| 3 years | 0% |
| 5 years | 0.47% |
The average dividend growth is 0.47% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The Payout Ratio indicates how well the company can maintain its dividend payments with its earnings and cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | -15631.16% |
| Free cash flow-based | 60.47% |
The extremely negative EPS-based payout ratio reflects discrepancies in earnings, potentially calling into question the sustainability of its dividend on earnings compatibility. The FCF-based ratio of 60.47% warrants attention but remains within a cautious acceptable range.
⚠️ Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency metrics are primordial for assessing a company's financial health and investment returns.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 8.35% | 11.80% | 10.54% |
| Earnings Yield | 5.51% | 1.72% | 0.12% |
| CAPEX to Operating Cash Flow | 31.04% | 0% | 0% |
| Stock-based Compensation to Revenue | 1.67% | 0% | 1.29% |
| Free Cash Flow / Operating Cash Flow Ratio | 68.96% | 100% | 100% |
The cash flow statements exhibit a moderate capital efficiency and robust cash flow coverage, critical for capital-intensive industries like real estate. Improvement between 2022 and 2023 in free cash flow yield is encouraging.
💼 Balance Sheet & Leverage Analysis
These metrics signify financial stability, evaluating liquidity and leverage levels to support long-term viability.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 239.60% | 282.89% | 313.75% |
| Debt-to-Assets | 60.70% | 63.87% | 65.11% |
| Debt-to-Capital | 70.55% | 73.88% | 75.83% |
| Net Debt to EBITDA | 7.91 | 8.09 | 8.24 |
| Current Ratio | 3.16 | 4.19 | 2.51 |
| Quick Ratio | 3.16 | 4.19 | 2.51 |
| Financial Leverage | 3.95 | 4.43 | 4.82 |
The leverage ratios indicate a heavily leveraged position, which could constrict financial flexibility, yet ratios remain manageable given current industry standards.
📈 Fundamental Strength & Profitability
Probing into profitability models reveals how well the company can sustain operations and flush out further growth potentials.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 9.51% | 3.24% | 0.26% |
| Return on Assets | 2.41% | 0.73% | 0.05% |
| Net Margin | 18.77% | 5.81% | 0.42% |
| EBIT Margin | 46.89% | 26.61% | 21.40% |
| EBITDA Margin | 56.94% | 56.98% | 55.99% |
| Gross Margin | 63.03% | 62.72% | 61.15% |
| Research & Development to Revenue | 0% | 0% | 0% |
The declining trend in return metrics and net margin reflects challenges Boston Properties faces in maximizing equity and asset utilization, though still showing strength in its margin profile.
📊 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Visualization |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 2 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
⭐ Rating
With a stable dividend history and formidable dividend yield, Boston Properties, Inc. presents a compelling case for dividend-investment strategies. However, stagnant growth and leveraged financials suggest a cautious examination of future profitability is advisable before considering long-term investment.