Apple Hospitality REIT, Inc. to Issue Monthly Dividend of $0.08 (NYSE:APLE)

Key Points

• Apple Hospitality REIT declared a monthly dividend of $0.08 per share, payable October 15 to shareholders of record on September 30; the annualized dividend is $0.96, representing a 6.2% yield.
• The current dividend payout ratio is high at 124.7%, meaning earnings do not fully cover the dividend. However, analysts expect next year’s earnings to support a lower projected payout ratio of 61.1%.
• Analysts maintain a generally cautious outlook, with an average “Hold” rating and a $16.50 price target, compared with the stock’s reported trading price of $15.56.

Apple Hospitality REIT, Inc. (NYSE:APLE - Get Free Report) announced a monthly dividend on Friday, September 18th. Investors of record on Wednesday, September 30th will be given a dividend of 0.08 per share by the real estate investment trust on Thursday, October 15th. This represents a c) annualized dividend and a dividend yield of 6.2%. The ex-dividend date is Wednesday, September 30th.

Apple Hospitality REIT has raised its dividend by an average of 0.3%per year over the last three years. Apple Hospitality REIT has a dividend payout ratio of 124.7% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Apple Hospitality REIT to earn $1.57 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 61.1%.

Apple Hospitality REIT Stock Down 0.2%

NYSE:APLE traded down $0.03 during trading hours on Friday, reaching $15.56. The company's stock had a trading volume of 5,070,051 shares, compared to its average volume of 2,942,659. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.73 and a quick ratio of 0.73. The company has a market cap of $3.67 billion, a price-to-earnings ratio of 21.03, a price-to-earnings-growth ratio of 3.02 and a beta of 0.88. Apple Hospitality REIT has a one year low of $10.85 and a one year high of $17.28. The business's 50-day moving average is $16.22 and its 200-day moving average is $14.73.

Apple Hospitality REIT (NYSE:APLE - Get Free Report) last posted its earnings results on Wednesday, August 5th. The real estate investment trust reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.01. Apple Hospitality REIT had a return on equity of 5.56% and a net margin of 12.17%.The company had revenue of $402.55 million for the quarter, compared to analyst estimates of $391.88 million. Equities research analysts predict that Apple Hospitality REIT will post 1.6 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. BMO Capital Markets raised their price objective on Apple Hospitality REIT from $14.00 to $16.00 and gave the company a "market perform" rating in a research note on Friday, June 12th. Wells Fargo & Company upped their target price on Apple Hospitality REIT from $15.00 to $17.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 23rd. Barclays reiterated an "equal weight" rating and set a $17.00 price target (up from $16.00) on shares of Apple Hospitality REIT in a report on Tuesday, July 21st. Cantor Fitzgerald reissued an "overweight" rating on shares of Apple Hospitality REIT in a research report on Friday, August 21st. Finally, Weiss Ratings upgraded shares of Apple Hospitality REIT from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, August 6th. Four investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $16.50.

About Apple Hospitality REIT

Apple Hospitality REIT, Inc is a real estate investment trust that owns a portfolio of upscale, select-service and extended-stay hotels across the United States. The company generates revenue primarily through hotel operations, including room accommodations, food and beverage services, and other guest services.

Its properties operate under well-known hotel brands, including Marriott, Hilton and Hyatt. The portfolio includes brands such as Courtyard by Marriott, Fairfield by Marriott, Residence Inn, SpringHill Suites, Hampton by Hilton, Hilton Garden Inn, Homewood Suites, Hyatt Place and Hyatt House, among others.

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