UMH Properties has approved a 6% hike in its quarterly dividend to $0.19 per share from $0.18.
UMH Properties (UMH) said that the new quarterly dividend will be paid on Mar. 15, 2021, to shareholders of record as of Feb. 16. The real estate investment trust’s annual dividend of $0.76 per share now reflects a dividend yield of 5.1%.
Earlier in November, the company reported 3Q20 normalized FFO (funds from operations) of $0.18 per share, beating the Street’s estimates of $0.17. The company said that FFO growth was driven by solid performance in its core business.
Sales jumped 54% during the reported quarter, driven by pent-up demand. Further, same-property NOI (net operating income) grew 13% while same-property occupancy expanded 320 basis points to 86.9%. The company’s rental home occupancy increased by 310 basis points to 95.4%. (See UMH stock analysis on TipRanks)
Following the 3Q results, Maxim Group analyst Michael Diana maintained a Buy rating and a price target of $18 (21.8% upside potential) on the stock. The analyst said, “Based on UMH’s superior average same-property NOI growth in the past three years and higher dividend yield (5.1% for UMH vs. 2.2% for peers), it could be argued that UMH deserves to trade at a premium to the comparables, not at a discount.” Diana added, “In the next four quarters, we expect a dividend yield of 5.1% and stock price appreciation of 28.5% (to our price target), which would result in an estimated total return of about 34%.”
From the rest of the Street, the stock scores a cautiously optimistic outlook with an analyst consensus of a Moderate Buy. The average analyst price target of $19 implies upside potential of about 28.6% to current levels. Shares were down by 0.6% over the past year.
Meanwhile, TipRanks' blogger tab indicates that sentiment around UMH is more bullish compared to other stocks in the financial sector. That's based on 5 blogger calls.
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