Boston Pizza Royalties Income Fund's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Boston Pizza Royalties Income Fund
Boston Pizza Royalties Income Fund(BPZZF) recently announced a dividend of $0.11 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Boston Pizza Royalties Income Fund's dividend performance and assess its sustainability.
What Does Boston Pizza Royalties Income Fund Do?
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Boston Pizza Royalties Income Fund is a limited-purpose open-ended trust. It is engaged in the operation and franchising of Boston Pizza restaurants in Canada. The Trust distributes all available cash from operations to the Trust unitholders to the maximum extent possible. The company receives revenue in the form of royalty income.
A Glimpse at Boston Pizza Royalties Income Fund's Dividend History
Boston Pizza Royalties Income Fund has a consistent dividend payment record since 2014. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Boston Pizza Royalties Income Fund's Dividend Yield and Growth
As of today, Boston Pizza Royalties Income Fund currently has a 12-month trailing dividend yield of 8.24% and a 12-month forward dividend yield of 8.35%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Boston Pizza Royalties Income Fund's annual dividend growth rate was -6.90%. Extended to a five-year horizon, this rate decreased to -9.70% per year. And over the past decade, Boston Pizza Royalties Income Fund's annual dividends per share growth rate stands at -4.80%.
Based on Boston Pizza Royalties Income Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Boston Pizza Royalties Income Fund stock as of today is approximately 4.95%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Boston Pizza Royalties Income Fund's dividend payout ratio is 0.74. This may suggest that the company's dividend may not be sustainable.
Boston Pizza Royalties Income Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Boston Pizza Royalties Income Fund's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Boston Pizza Royalties Income Fund's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Boston Pizza Royalties Income Fund's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Boston Pizza Royalties Income Fund's revenue has increased by approximately 0.40% per year on average, a rate that outperforms approximately 57.45% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Boston Pizza Royalties Income Fund's earnings increased by approximately 14.20% per year on average, a rate that outperforms approximately 60.09% of global competitors.
Next Steps
Considering Boston Pizza Royalties Income Fund's consistent dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, it seems to offer a promising dividend investment opportunity. However, the sustainability of dividends is contingent on the company's future performance. Investors should keep a close eye on these metrics and the company's overall financial health. Will Boston Pizza Royalties Income Fund continue to deliver value to its shareholders through dividends? Only time will tell.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
