April 09, 2026 a 02:46 am
UDR: Dividend Analysis - UDR, Inc.
UDR, Inc. presents a compelling case for dividend investors, showcasing a solid history of consistent payouts. With a remarkably robust track record of 42 years in continuous dividend distribution, UDR promises stability and reliability for income-focused portfolios.
📊 Overview
The following table provides an overview of key dividend information for UDR, Inc., a leader in the Real Estate sector with competitive yield and dividend history metrics:
| Metric | Value |
|---|---|
| Sector | Real Estate |
| Dividend Yield | 4.93% |
| Current Dividend per Share | $1.73 |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
📈 Dividend History
Consistent and uninterrupted dividend history demonstrates UDR's strength in managing cash flow to support shareholder payouts:
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.865 |
| 2025 | 1.715 |
| 2024 | 1.695 |
| 2023 | 1.64 |
| 2022 | 1.5025 |
📊 Dividend Growth
Dividend growth rates are key indicators of a company's long-term strength. UDR's dividend growth over the past 3 and 5 years reflects stewardship of capital and commitment to returning value to shareholders:
| Time | Growth |
|---|---|
| 3 years | 4.51% |
| 5 years | 3.81% |
The average dividend growth is 3.81% over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
Payout ratios are critical to evaluate the sustainability of dividends. UDR's EPS-based payout ratio is high, signaling potential limitations for further dividend increases without significant earnings growth:
| Key Figure | Ratio |
|---|---|
| EPS-based | 151.12% |
| Free Cash Flow-based | 63.09% |
While the EPS-based payout ratio of 151.12% is concerning, the FCF-based ratio of 63.09% suggests payouts are currently sustainable, albeit tight.
💸 Cashflow & Capital Efficiency
These metrics assess how effectively UDR manages its financial resources, crucial for sustaining and growing dividends:
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 4.13% | 4.23% | 5.07% |
| Earnings Yield | 3.53% | 6.27% | 3.12% |
| CAPEX to Operating Cash Flow | 0.375 | 0.31 | 0.32 |
| Stock-based Compensation to Revenue | 2.02% | 1.95% | 1.55% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.62 | 0.69 | 0.68 |
UDR shows consistent capital efficiency and cash flow generation adequacy, ensuring robust dividend coverage through varied market cycles.
⚖️ Balance Sheet & Leverage Analysis
This analysis is essential for evaluating the company's financial stability and the risk level inherent in its capital structure:
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.50 | 1.75 | 1.88 |
| Debt-to-Assets | 0.53 | 0.55 | 0.58 |
| Debt-to-Capital | 0.60 | 0.64 | 0.65 |
| Net Debt to EBITDA | 4.43 | 6.01 | 6.14 |
| Current Ratio | 0.31 | 0.39 | 3.31 |
| Quick Ratio | 0.31 | 0.39 | 3.31 |
| Financial Leverage | 2.85 | 3.16 | 3.23 |
UDR maintains manageable leverage levels, although a high net debt to EBITDA of over 6 times in recent years could pose future refinancing challenges.
📈 Fundamental Strength & Profitability
UDR's profitability measures highlight efficiency in generating returns on its equity and assets, essential for sustained value creation:
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 11.13% | 2.60% | 11.49% |
| Return on Assets | 3.91% | 0.82% | 3.56% |
| Net Margin | 27.30% | 5.36% | 22.06% |
| EBIT Margin | 40.40% | 18.23% | 18.87% |
| EBITDA Margin | 82.91% | 59.83% | 58.54% |
| Gross Margin | 24.12% | 24.94% | 25.59% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Despite modest net margins, efficient use of assets and equity results in reliable profitability and aligns with UDR's strategic growth objectives.
📉 Price Development
✅ Dividend Scoring System
An overall assessment of UDR's dividend profile through various key metrics and qualitative factors:
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 5 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
🗣️ Rating and Recommendation
Based on the comprehensive analysis, UDR presents a strong dividend profile with a commendable track record of reliability and growth potential. Its high payout ratio warrants cautious optimism, suggesting investment only after confirming its capacity to sustain earnings growth. Investors seeking moderate yield with some risk of volatility might find UDR an intriguing addition to their portfolios.