January 11, 2026 a 03:31 pm
EQR: Dividend Analysis - Equity Residential
This analysis provides a detailed insight into Equity Residential's dividend profile, showcasing a stable and promising investment potential. With a robust history and moderate growth in dividends, the company offers investors both reliability and gradually increasing returns. The unique capital structure and management's strategic focus on maximizing shareholder value further enhance its attractiveness.
📊 Overview
Equity Residential operates in the real estate sector, exhibiting a strong dividend yield, significant dividend history, and consistent performance in payouts.
| Category | Detail |
|---|---|
| Sector | Real Estate |
| Dividend yield | 4.47% |
| Current dividend per share | 2.70 USD |
| Dividend history | 34 years |
| Last cut or suspension | None |
🗣️ Dividend History
Equity Residential's dividend history reflects resilience and reliability, important for assessing the company's long-term stability and investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.6925 |
| 2025 | 2.7525 |
| 2024 | 2.025 |
| 2023 | 2.6500 |
| 2022 | 2.500 |
📈 Dividend Growth
The company's dividend growth is crucial for evaluating its potential to amplify payouts and reinforce investor trust.
| Time | Growth |
|---|---|
| 3 years | 3.26% |
| 5 years | 2.69% |
The average dividend growth is 2.69% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Understanding payout ratios is vital for assessing sustainability of the dividend payouts regarding company's earnings and cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 90.76% |
| Free cash flow-based | 79.83% |
While a 90.76% EPS-based payout indicates high distribution relative to net earnings, the 79.83% FCF-based ratio shows better sustainability with respect to free cash flows.
📉 Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency aids in understanding operational efficiency and capital allocation effectiveness.
| 2024 | 2023 | 2022 |
|---|---|---|
| Free Cash Flow Yield: 4.62% | 5.18% | 5.51% |
| Earnings Yield: 3.81% | 3.61% | 3.50% |
| CAPEX to Operating Cash Flow: 20.25% | 21.76% | 15.96% |
| Stock-based Compensation to Revenue: 1.05% | 1.11% | 1.08% |
| Free Cash Flow / Operating Cash Flow Ratio: 79.75% | 78.24% | 84.04% |
| Return on Invested Capital: 8.93% | 8.99% | 8.54% |
These metrics suggest a solid cash flow generation capability and efficient capital usage, crucial for sustaining dividend payouts.
Balance Sheet & Leverage Analysis
Analyzing the balance sheet and leverage ratios are key to evaluating financial health and ability to weather economic downturns.
| 2024 | 2023 | 2022 |
|---|---|---|
| Debt-to-Equity: 76.30% | 69.48% | 69.22% |
| Debt-to-Assets: 40.45% | 38.44% | 38.25% |
| Debt-to-Capital: 43.28% | 40.99% | 40.91% |
| Net Debt to EBITDA: 4.14 | 4.30 | 4.50 |
| Current Ratio: 0.16 | 0.17 | 0.26 |
| Quick Ratio: 0.16 | 0.17 | 0.26 |
| Financial Leverage: 1.89 | 1.81 | 1.81 |
The debt ratios indicate a balanced leverage strategy, although a low current ratio may suggest a tighter liquidity position.
Fundamental Strength & Profitability
Fundamental and profitability metrics determine the company's capacity to generate profits relative to shareholder equity and assets.
| 2024 | 2023 | 2022 |
|---|---|---|
| Return on Equity: 9.38% | 7.54% | 6.95% |
| Return on Assets: 4.97% | 4.17% | 3.84% |
| Net Margin: 34.76% | 29.07% | 28.40% |
| EBIT Margin: 29.25% | 30.55% | 29.68% |
| EBITDA Margin: 61.69% | 61.92% | 62.37% |
| Gross Margin: 63.27% | 63.59% | 64.08% |
| R&D to Revenue: 0% | 0% | 0% |
The high profitability margins showcase strong operational efficiency despite competitive market pressures, further supported by stable ROE and ROA indicators.
Price Development
Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend yield | 5 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
Rating
Equity Residential exhibits a resilient dividend profile suitable for long-term income-focused investors. Its strong financial health, consistent dividend history, and good cash flow coverage make it a reliable choice for stable returns. However, investors should be cautiously optimistic due to the relatively high payout ratio and liquidity constraints.