July 29, 2025 a 03:31 am
INVH: Dividend Analysis - Invitation Homes Inc.
Invitation Homes Inc., with its significant market presence, displays a robust dividend yield making it an attractive choice for dividend-focused investors. The company's history of uninterrupted dividend payouts reflects potential stability. However, the elevated payout ratio trends signal a cautious approach to future dividend sustainability.
Overview 📊
Detailing the dividend metrics, Invitation Homes Inc. exhibits consistency but highlights certain areas of concern due to high payout ratios.
| Key Metric | Value |
|---|---|
| Sector | Real Estate |
| Dividend yield | 3.49 % |
| Current dividend per share | 1.13 USD |
| Dividend history | 9 years |
| Last cut or suspension | None |
Dividend History 🗣️
Analyzing past dividend distributions underscores a commitment to shareholder returns. Understanding historical trends aids in forecasting future payouts and investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.58 |
| 2024 | 1.13 |
| 2023 | 1.32 |
| 2022 | 0.88 |
| 2021 | 0.68 |
Dividend Growth 📈
The steady growth of dividends illustrates the company's ability to enhance shareholder returns over time. Assessing growth over different periods helps in evaluating the sustainability of dividends.
| Time | Growth |
|---|---|
| 3 years | 18.45 % |
| 5 years | 16.79 % |
The average dividend growth is 16.79 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 📉
A higher payout ratio can indicate a less sustainable dividend if the company faces declining profits. Monitoring this is crucial to assess the risk level of dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 144.45 % |
| Free cash flow-based | 73.57 % |
With an EPS-based payout ratio of 144.45 %, it points to potential sustainability challenges. The 73.57 % FCF-based ratio is more manageable but still necessitates prudence.
Cashflow & Capital Efficiency ✅
Cash flow metrics and capital efficiency ratios offer insights into the company's operational prowess and financial stability.
| Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.40 % | 4.24 % | 4.51 % |
| Earnings Yield | 2.32 % | 2.49 % | 2.12 % |
| CAPEX to Operating Cash Flow | 20.28 % | 19.97 % | 20.33 % |
| Stock-based Compensation to Revenue | 1.07 % | 1.21 % | 1.30 % |
| Free Cash Flow / Operating Cash Flow Ratio | 79.72 % | 80.03 % | 79.67 % |
The consistent cash flow yields and efficient capital utilization indicate sound financial management and sustainable operations.
Balance Sheet & Leverage Analysis ⚠️
An analysis of balance sheet metrics provides insights into the company's debt management and overall financial stability, crucial for long-term sustainability.
| Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.84 | 0.84 | 0.75 |
| Debt-to-Assets | 0.44 | 0.44 | 0.42 |
| Debt-to-Capital | 0.46 | 0.46 | 0.43 |
| Net Debt to EBITDA | 5.54 | 5.45 | 3.72 |
| Current Ratio | 0.82 | 5.71 | 2.29 |
| Quick Ratio | 0.82 | 5.71 | 3.41 |
| Financial Leverage | 1.92 | 1.89 | 1.80 |
The financial leverage and balance sheet metrics reflect moderate reliance on debt, necessitating careful monitoring to avoid potential liquidity issues.
Fundamental Strength & Profitability ✅
These metrics illustrate the company's efficiency in generating profits relative to its resources, signaling underlying strengths and weaknesses.
| Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 4.65 % | 5.11 % | 3.72 % |
| Return on Assets | 2.43 % | 2.70 % | 2.07 % |
| Margins: Net | 17.33 % | 21.36 % | 17.20 % |
| Margins: EBIT | 31.37 % | 35.13 % | 30.91 % |
| Margins: EBITDA | 55.28 % | 59.18 % | 90.46 % |
| Margins: Gross | 59.04 % | 59.87 % | 60.77 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
Invitation Homes' robust profitability margins and returns on equity suggest efficiency, though margins should be monitored for any significant shifts.
Price Development 📈
Dividend Scoring System 🔍
| Category | Score | Visual Score |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 30/40
Rating 🏆
The analysis of Invitation Homes Inc. suggests a fundamentally strong yet financial cautious company. The dividend history is commendable, but elevated payout ratios underline the need for investors to tread carefully. Overall, the dividends remain attractive, though potential investors must watch the sustainability of earnings closely.