LONDON, UK / ACCESSWIRE / July 31, 2018 / Active-Investors has a free review on Apple Hospitality REIT, Inc. (NYSE: APLE) following the Company’s announcement that it will begin trading ex-dividend on August 1, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on July 31, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on APLE:
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Dividend Declared
On July 20, 2018, Apple Hospitality announced that its Board of Directors declared a regular monthly cash distribution of $0.10 per common share for the month of August 2018. The distribution is payable on August 15, 2018, to shareholders of record as of August 02, 2018.
Apple Hospitality’s indicated dividend represents a yield of 6.73%, which is more than double compared to the average dividend yield of 3.06% for the Finance sector.
Dividend Insights
Apple Hospitality has a dividend payout ratio of 68.6%, which denotes that the Company distributes approximately $0.69 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts’ estimates, Apple Hospitality is forecasted to report earnings of $0.95 for the upcoming year compared to the Company’s annualized dividend of $1.20. One of the primary reasons for the difference between earnings and annualized dividend is that Apple Hospitality is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which then provides a better picture of any company’s profitability and capacity to pay and to sustain dividends. For instance, Apple Hospitality reported net income available to common stockholders for the quarter ended March 31, 2018, of $42.2 million, or $0.18 per share, compared to $34.4 million, or $0.15 per share, in Q2 2017.
On the other hand, Apple Hospitality’s modified FFO for the quarter ended March 31, 2018, was $87.9 million or $0.38 per share, compared to $86.9 million, or $0.39 per diluted share, in Q2 2017. The FFO number indicates that the Company should be able to comfortably cover its dividend payout through earnings.
Upcoming Earnings
On June 28, 2018, Apple Hospitality announced that it plans to report second quarter 2018 financial results after the market closes on August 06, 2018, and host a conference call for investors and interested parties on Tuesday, August 07, 2018, at 9:00 a.m. Eastern Time, to discuss the results.
About Apple Hospitality REIT, Inc.
Apple Hospitality is a publicly traded REIT that owns one of the largest and most diverse portfolios of upscale, select-service hotels in the United States. Apple Hospitality’s portfolio consists of 241 hotels with more than 30,700 guest rooms located in 88 markets throughout 34 states. Franchised with industry-leading brands, the Company’s portfolio comprises 115 Marriott-branded hotels and 126 Hilton-branded hotels.
Stock Performance Snapshot
July 30, 2018 – At Monday’s closing bell, Apple Hospitality REIT’s stock slightly climbed 0.39%, ending the trading session at $17.90.
Volume traded for the day: 769.56 thousand shares.
After yesterday’s close, Apple Hospitality REIT’s market cap was at $4.16 billion.
Price to Earnings (P/E) ratio was at 21.13.
The stock has a dividend yield of 6.70%.
The stock is part of the Financial sector, categorized under the REIT – Hotel/Motel industry.
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