June 25, 2025 a 03:31 pm
UDR: Dividend Analysis - UDR, Inc.
UDR, Inc. exhibits a compelling dividend profile, characterized by a robust yield and a long-standing history of uninterrupted payouts. With a 41-year streak of dividend payments, UDR demonstrates resilience and commitment towards shareholder returns. However, attention should be paid to its high payout ratios, indicative of the pressures faced in maintaining its dividend. Despite this, the company shows a promising outlook for moderate growth and enhanced stability, driven by its sector placement within Real Estate Investment Trusts (REITs).
📊 Overview
The company's dividend metrics provide insight into its financial health and commitment to returning value to shareholders.
| Key Metrics | Values |
|---|---|
| Sector | Real Estate |
| Dividend Yield | 4.17% |
| Current Dividend Per Share | 1.71 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
📈 Dividend History
Examining the historical dividend payments can provide insights into consistency and reliability in shareholder distributions.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.285 |
| 2024 | 1.695 |
| 2023 | 1.64 |
| 2022 | 1.5025 |
| 2021 | 1.4475 |
💹 Dividend Growth
Analyzing dividend growth is instrumental in understanding a company's potential for future profitability and shareholder value increase.
| Time | Growth |
|---|---|
| 3 years | 5.40% |
| 5 years | 4.66% |
The average dividend growth is 4.66% over 5 years. This shows moderate but steady dividend growth.
🧮 Payout Ratio
Payout Ratios are crucial in assessing how well earnings support the dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 459.27% |
| Free cash flow-based | 86.48% |
The EPS-based payout ratio of 459.27% indicates that the dividends are significantly higher than the net income, posing a potential risk. However, a more manageable FCF-based ratio of 86.48% paints a better picture of dividend coverage.
💰 Cashflow & Capital Efficiency
Evaluating cash flow efficiency is vital for understanding operational effectiveness and investment dynamics.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 0.0469 | 0.0413 | 0.0423 |
| Earnings Yield | 0.0070 | 0.0353 | 0.0063 |
| CAPEX to Operating Cash Flow | 0.288 | 0.375 | 0.000 |
| Stock-based Compensation to Revenue | 0.0181 | 0.0202 | 0.0195 |
| Free Cash Flow / Operating Cash Flow Ratio | 0.712 | 0.625 | 0.690 |
| Return on Invested Capital | 0.0229 | 0.0576 | 0.0269 |
The cash flow and capital efficiency metrics show a steady operational cash flow, although some fluctuations in earnings yield indicate variability in profit generation efficiency.
📉 Balance Sheet & Leverage Analysis
Understanding leverage and liquidity ratios is essential to gauge financial stability and ability to meet short and long-term obligations.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.465 | 1.499 | 1.745 |
| Debt-to-Assets | 0.544 | 0.526 | 0.551 |
| Debt-to-Capital | 0.594 | 0.600 | 0.636 |
| Net Debt to EBITDA | 6.564 | 4.433 | 6.141 |
| Current Ratio | 0.200 | 0.290 | 0.390 |
| Quick Ratio | -0.068 | 0.290 | 0.390 |
| Financial Leverage | 2.694 | 2.850 | 3.165 |
The leverage ratios highlight a significant leverage and a moderate liquidity position. The high net debt to EBITDA is concerning, however, operational cash flow remains somewhat stable.
📈 Fundamental Strength & Profitability
Profitability ratios are crucial for assessing the overall financial health and future company growth.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 0.0212 | 0.1113 | 0.0260 |
| Return on Assets | 0.0079 | 0.0391 | 0.0082 |
| Net Margin | 0.0573 | 0.2730 | 0.0536 |
| EBIT Margin | 0.1686 | 0.4040 | 0.1823 |
| EBITDA Margin | 0.6028 | 0.8291 | 0.5852 |
| Gross Margin | 0.2182 | 0.6625 | 0.6862 |
| R&D to Revenue | 0.0000 | 0.0000 | 0.0000 |
With solid margins and a respectable return on equity in 2023, UDR shows potential for profitability, though variability in other years requires close monitoring.
🔎 Price Development
✅ Dividend Scoring System
| Criterion | Score | Indicator |
|---|---|---|
| Dividend Yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 3/5 | |
| Payout Ratio | 2/5 | |
| Financial Stability | 3/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 3/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 28/40
🗣️ Rating
Overall, UDR, Inc. displays a generally strong dividend profile with respectable yields and growth. However, its high payout ratio based on EPS and leverage require careful consideration. Investors should weigh the moderate growth prospects against stability concerns, potentially seeing UDR as a viable option for those seeking income through dividends coupled with moderate growth.