National Retail Properties (NNN) Pays Us in Q1 2017

We received a dividend in the amount of US$125.43 (45.5 cents x 275.67 shares) from National Retail Properties (NNN). This marks the 3rd quarter that NNN has paid the same dividend amount and we are expecting that the next quarter will be the last 45.5 cents per share for dividend and then afterward, we feel that there will be an increase in dividends… but how did we say that most likely there will be an increase in dividends?

Before we discuss dividends, let’s have a quick overview of what National Retail Properties (NNN) does. Founded in 1984, the company is a publicly owned equity real estate investment trust (REITs). They basically operate, develop and acquire retail properties. They do also purchasing and financing leased retail properties. Now, how about the dividends?

(1) For starters, the company has been increasing its dividend since the late ‘80s. Based from the trend, they prefer a small but stable increase in their dividends. This behavior makes NNN a suitable dividend champion because on a long-term investments view, we have “confidence” that there is a continuous stream of cash coming in.

(2) Look at their dividend growth… based from 10yrs dividend growth, they’ve been growing their dividend by 2.6% annually (which goes back to point #1… small but stable increase); however if we check out the growth in the recent years, they’ve been increase their dividends between 3%-4%… the recent dividend growth in the past few years is a great news for us.

 (3) Their Dividend Payout Ratio is still below 2006 and 2010 level. At 1.40 dividend payout, we see that National Retail (NNN) will sustain the good increase in dividends in the near future.

(4) Lastly, the Dividend Yield has an upward momentum since mid-2016. With a dividend yield of +4%, the upward trend looks like that there is still room to increase dividend growth and that the company has still a strong commitment in sharing its profit in the forms of dividend at least in the near future.

So there, these are the things that we are looking forward about National Retail (NNN).

Share This:

Comments are closed here.