June 26, 2025 a 03:31 am
MAA: Dividend Analysis - Mid-America Apartment Communities, Inc.
Mid-America Apartment Communities, Inc. boasts a stable dividend profile with a consistent growth trajectory. With a competitive dividend yield and a robust history spanning over three decades, MAA offers a strong case for income-focused investors. However, the elevated payout ratio may warrant closer scrutiny.
Overview 📊
Mid-America Apartment Communities operates in the Real Estate sector, providing a solid dividend yield of 4.12% with a current dividend per share of $5.91. This company has a remarkable 32-year dividend history, with no recent cuts or suspensions, underlining its commitment to shareholders.
| Metric | Details |
|---|---|
| Sector | Real Estate |
| Dividend Yield | 4.12% |
| Current Dividend Per Share | $5.91 |
| Dividend History | 32 years |
| Last Cut or Suspension | None |
Dividend History 📜
The prolonged history of dividend payments by Mid-America Apartment Communities is testament to its resilient business model and dedication to returning capital to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | $4.545 |
| 2024 | $5.88 |
| 2023 | $5.60 |
| 2022 | $4.675 |
| 2021 | $4.10 |
Dividend Growth 📈
Monitoring dividend growth offers insights into the company’s capacity to increase shareholder returns. In the past 3 years, MAA has seen a growth rate of 12.77%, while the 5-year average stands at 8.90%.
| 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 indicate the proportion of earnings distributed as dividends and are crucial for assessing dividend sustainability. Currently, the EPS-based payout ratio is 122.15% and the free cash flow-based payout ratio is 83.92%.
| Key Figure | Ratio |
|---|---|
| EPS-based | 122.15% |
| Free cash flow-based | 83.92% |
The high EPS payout ratio suggests potential unsustainability, warranting vigilance. The free cash flow ratio below 100% indicates some room for flexibility.
Cashflow & Capital Efficiency 🔍
Evaluating cash flows and capital efficiency provides insight into financial health and capacity for continued reinvestment. The following metrics illustrate MAA's position:
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.30% | 3.82% | 4.21% |
| Earnings Yield | 2.92% | 3.53% | 3.52% |
| CAPEX to Operating Cash Flow | 29.34% | 47.43% | 27.98% |
| Stock-based Compensation to Revenue | 0.69% | 0.73% | 0.93% |
| Free Cash Flow / Operating Cash Flow Ratio | 70.63% | 52.57% | 72.02% |
Current metrics suggest stable cash flow generation capacity, although attention should be paid to CAPEX requirements relative to cash generation.
Balance Sheet & Leverage Analysis 🏦
MAA's balance sheet metrics reflect its leverage and liquidity position, crucial for evaluating long-term viability and risk factors.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 83.95% | 74.72% | 73.27% |
| Debt-to-Assets | 42.39% | 39.77% | 39.27% |
| Debt-to-Capital | 45.64% | 42.76% | 42.29% |
| Net Debt to EBITDA | -4.13% | 351.98% | 325.19% |
| Current Ratio | 0.00 | 0.00 | 0.10 |
| Quick Ratio | 0.08% | 0.06% | 0.10% |
| Financial Leverage | 198.05% | 187.86% | 186.55% |
While the leverage ratios suggest some exposure to debt, the current liquidity positions may need improvements to weather potential downturns.
Fundamental Strength & Profitability 📈
Assessing profitability and operational efficiency is crucial to determining MAA's ability to maintain and grow dividends over time.
| 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 | 0.00% | 0.00% | 0.00% |
Profitability indicators are strong, with consistent margins pointing to operational robustness. The lack of R&D expenditure is typical in the real estate sector.
Price Development 🗓️
Dividend Scoring System 🏆
| Category | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total score: 28/40
Rating 🗣️
Mid-America Apartment Communities delivers a compelling dividend offering underpinned by historical stability and growth. Despite an elevated payout ratio that suggests future dividend increases may be constrained, the company's strong dividend history and yield form a solid surface for income-oriented investment strategies.