April 23, 2025 a 02:46 am
MAA: Dividend Analysis - Mid-America Apartment Communities, Inc.
Mid-America Apartment Communities, Inc. (MAA) has maintained a consistent dividend record, marking stability and reassurance to investors. With a substantial market capitalization and decades of dividend payments, MAA displays both strength and reliability in its dividend policy. However, its high payout ratios could suggest caution as reinvestment opportunities are limited.
📊 Overview
The overview highlights key aspects of MAA's dividend profile, encapsulating the sector presence and yield. A robust historical record of 32 years of dividend payments signifies resilience, yet the potential for payout interruptions requires monitoring.
| Detail | Value |
|---|---|
| Sector | Real Estate |
| Dividend Yield | 3.85% |
| Current Dividend per Share | $5.91 USD |
| Dividend History | 32 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Analyzing MAA’s dividend history provides insights into its payout resilience and growth trajectory. Such historical performance is vital for understanding long-term commitment to shareholder returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $3.030 |
| 2024 | $5.88 |
| 2023 | $5.60 |
| 2022 | $4.675 |
| 2021 | $4.100 |
📈 Dividend Growth
Dividend growth analysis sheds light on future income potential from investments. MAA demonstrates a moderate growth, pivotal for long-term dividend strategies.
| Time | Growth |
|---|---|
| 3 years | 12.77% |
| 5 years | 8.90% |
The average dividend growth is 8.90% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Payout ratios assess the sustainability of a company's dividend policy. With an EPS payout ratio of 130.91% and an FCF payout ratio of 89.03%, we observe a high commitment to dividends, but the sustainability could be challenged if earnings or cash flows decline.
| Key figure | Ratio |
|---|---|
| EPS-based | 130.91% |
| Free cash flow-based | 89.03% |
✅ Cashflow & Capital Efficiency
Cash flow and capital efficiency are crucial for understanding a company's ability to fund dividends. MAA displays varied but generally sound metrics in these areas, indicating reasonable cash flow management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.30% | 3.82% | 4.21% |
| Earnings Yield | 2.92% | 3.52% | 3.52% |
| CAPEX to Operating Cash Flow | 29.35% | 47.43% | 27.98% |
| Stock-based Compensation to Revenue | - | 0.73% | 0.93% |
| Free Cash Flow / Operating Cash Flow Ratio | 70.65% | 52.57% | 72.02% |
📉 Balance Sheet & Leverage Analysis
Balancing leverage and stability is key; MAA maintains reasonable leverage ratios, though ongoing debt monitoring remains essential.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.84 | 0.75 | 0.73 |
| Debt-to-Assets | 0.42 | 0.40 | 0.39 |
| Debt-to-Capital | 0.46 | 0.43 | 0.42 |
| Net Debt to EBITDA | 3.82 | 3.52 | 3.25 |
| Current Ratio | 0.08 | 0.06 | 0.10 |
| Quick Ratio | 0.08 | 0.06 | 0.10 |
| Financial Leverage | 1.98 | 1.88 | 1.87 |
🗣️ Fundamental Strength & Profitability
Fundamentals reflect on profitability, strongly influencing the ability to sustain dividends. MAA portrays a robust profile, yet competitive pressures and market conditions must be considered.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.84% | 9.04% | 10.58% |
| Return on Assets | 4.47% | 4.81% | 5.67% |
| Net Margin | 24.08% | 25.73% | 31.56% |
| EBIT Margin | 32.56% | 33.52% | 39.69% |
| EBITDA Margin | 59.32% | 59.85% | 66.63% |
| Gross Margin | 32.55% | 34.79% | 34.05% |
| R&D to Revenue | - | - | - |
Price Development
📊 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
🔍 Rating
MAA shows strong appeal as a dividend stock, benefiting from a resilient payout history and consistent yield. While the high payout ratios require vigilance, the overall stable financial metrics present a reliable investment opportunity for dividend-seeking investors. Recommended with caution due to payout sustainability concerns.