Agree Realty Corporation (NYSE:ADC) Raises Dividend to $0.26 Per Share

Key Points

• Agree Realty Corporation has raised its monthly dividend to $0.26 per share, marking a 2.3% increase from the previous dividend, with a yield of 4.3% based on the current price.
• The company has a payout ratio of 155.8%, indicating it is relying on its balance sheet to cover dividend payments, but future earnings projections suggest a more sustainable payout ratio of 68.7% next year.
• Analysts have mixed views on the stock, with a consensus rating of "Moderate Buy" and a target price averaging $80.63, reflecting varying outlooks on its performance.

Agree Realty Corporation (NYSE:ADC - Get Free Report) declared a monthly dividend on Tuesday, October 14th. Investors of record on Friday, October 31st will be paid a dividend of 0.262 per share by the real estate investment trust on Friday, November 14th. This represents a c) annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Friday, October 31st. This is a 2.3% increase from Agree Realty's previous monthly dividend of $0.26.

Agree Realty has a payout ratio of 155.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Agree Realty to earn $4.47 per share next year, which means the company should continue to be able to cover its $3.07 annual dividend with an expected future payout ratio of 68.7%.

Agree Realty Stock Performance

NYSE:ADC opened at $73.23 on Wednesday. The firm's 50-day moving average is $72.14 and its 200-day moving average is $73.65. Agree Realty has a 52-week low of $67.58 and a 52-week high of $79.65. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.71 and a current ratio of 0.71. The company has a market cap of $8.10 billion, a price-to-earnings ratio of 43.59, a PEG ratio of 2.36 and a beta of 0.55.

Agree Realty (NYSE:ADC - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The real estate investment trust reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.05 by $0.01. Agree Realty had a net margin of 28.16% and a return on equity of 3.47%. The company had revenue of $175.53 million for the quarter, compared to the consensus estimate of $173.95 million. During the same quarter in the previous year, the firm posted $1.04 EPS. The business's revenue was up 15.0% compared to the same quarter last year. Agree Realty has set its FY 2025 guidance at 4.290-4.320 EPS. Equities research analysts anticipate that Agree Realty will post 4.27 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Mizuho dropped their price objective on shares of Agree Realty from $78.00 to $77.00 and set a "neutral" rating on the stock in a report on Thursday, September 11th. JMP Securities restated a "market perform" rating on shares of Agree Realty in a report on Monday, June 30th. Barclays dropped their price objective on shares of Agree Realty from $78.00 to $77.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 20th. Evercore ISI lifted their target price on shares of Agree Realty from $83.00 to $85.00 and gave the company an "outperform" rating in a research report on Monday, September 15th. Finally, UBS Group lifted their target price on shares of Agree Realty from $80.00 to $82.00 and gave the company a "buy" rating in a research report on Tuesday, August 12th. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Agree Realty currently has a consensus rating of "Moderate Buy" and a consensus target price of $80.63.

Agree Realty Company Profile

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of December 31, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 million square feet of gross leasable area.

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