Bridgemarq Real Estate Services Inc. (TSE: BRE) Investors are expected to receive a payment of C $ 0.11 per share on September 30th. Thus, the dividend yield is 8.0%, which increases the yield for investors quite well.
Bridgemarq Real Estate Services distribution can be difficult to maintain
If the payouts are not stable, high returns over several years will not matter much. Bridgemarq Real Estate Services does not generate any profit and pays out a very large portion of the money it makes. This makes us feel that dividends will be difficult to maintain.
Earnings per share per share could fall 12.8% over the next year based on the latest results. This means that the company will be unprofitable, and managers may be faced with a difficult choice between continuing to pay dividends or removing pressure from the balance sheet.
Volatility of dividends
Although the company has paid dividends for a long time, it has cut dividends at least once over the past 10 years. Since 2011, dividends have increased from C $ 1.40 to C $ 1.35. Dividend payments fell by less than 1% per year over this time period. A company that cuts dividends over time is usually not what we are looking for.
Dividends have limited upside potential
With relatively volatile dividends, it is even more important to assess whether earnings per share are growing, which could indicate an increase in dividends in the future. Bridgemarq Real Estate Services’ earnings per share have declined 13% y / y over the past five years. The sharp decline in earnings per share is small in terms of dividends. Even conservative payout ratios can come under pressure if profits fall hard enough.
We’re not big fans of Bridgemarq Real Estate Services dividends
Overall, this is not the best candidate for a source of income, although dividends have been stable this year. The company isn’t making enough money to pay as much as it is, and other factors don’t look promising either. Dividends do not instill confidence that they will generate solid returns in the future.
Companies with stable dividend policies are likely to enjoy more investor interest than companies suffering from a more inconsistent approach. Meanwhile, despite the importance of paying dividends, these are not the only factors our readers should be aware of when evaluating a company. Case in point: we noticed 4 warning signs for Bridgemarq Real Estate Services (of which 3 are a bit annoying!) you should be aware of. We also collected list of world stocks with solid dividends.
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