Piedmont Office Realty Trust, Inc. : PDM-US: Dividend Analysis : November 24th, 2017 (record date) : By the numbers : November 23, 2017

Our analysis is based on comparing Piedmont Office Realty Trust, Inc. with the following peers – Brandywine Realty Trust, Government Properties Income Trust, Lexington Realty Trust, Kilroy Realty Corporation, Boston Properties, Inc., Cousins Properties Incorporated, SL Green Realty Corp., Vornado Realty Trust and Douglas Emmett, Inc (BDN-US, GOV-US, LXP-US, KRC-US, BXP-US, CUZ-US, SLG-US, VNO-US and DEI-US).

Piedmont Office Realty Trust, Inc.’s dividend yield is 5.26 percent and its dividend payout is 207.66 percent. This compares to a peer median dividend yield of 3.55 percent and a payout level of 232.89 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 50 out of a possible score of 100, lessens its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), PDM-US paid a high quality dividend, which represents a yield of 4.21% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 2 were medium quality and 1 was low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), PDM-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.97x), investing cash flow (coverage of 1.74x), issuance cash flow (coverage of -2.46x) and twelve-month prior cash (coverage of 0.09x), for a total dividend coverage of 1.31x.

PDM-US’s issuance cash flow includes outflows from net debt repayment (coverage of -2.40x) and net share buybacks (coverage of -0.03x). Thus, the total coverage including share buybacks is 1.34x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 4.51 5.09 4.31 4.61 3.02 5.26
Dividend Payout (%) 207.79 195.89 305.31 7850.47 1935.48 207.66

A complete list of metrics and analysis is available on the company page.

Company Profile

Piedmont Office Realty Trust, Inc. engages in the provision real estate business. Its activities include acquisition, investment, development, management, disposing, and ownership of commercial real estate properties throughout the United States. The company was founded on July 3, 1997 and is headquartered in Johns Creek, GA.


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