Gladstone Commercial Corporation (NASDAQ:GOOD) Shares Will Pay Monthly Dividend of $0.10

Key Points

• Gladstone Commercial declared a monthly dividend of $0.10 per share, payable October 30 to shareholders of record on October 23. The dividend annualizes to $1.20 per share and implies a 9.3% yield.
• The current payout ratio is a high 413.8%, meaning earnings do not presently cover the dividend; however, analysts expect next year’s earnings to reduce the projected payout ratio to 85.1%.
• Analysts maintain a consensus “Hold” rating with a $12.83 target price, roughly in line with the stock’s reported $12.84 opening price.

Gladstone Commercial Corporation (NASDAQ:GOOD - Get Free Report) announced a monthly dividend on Tuesday, October 13th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.10 per share by the real estate investment trust on Monday, November 30th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 9.3%. The ex-dividend date of this dividend is Thursday, November 19th.

Gladstone Commercial has a payout ratio of 413.8% 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 Gladstone Commercial to earn $1.41 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 85.1%.

Gladstone Commercial Trading Up 0.2%

Shares of NASDAQ GOOD opened at $12.84 on Wednesday. Gladstone Commercial has a 12 month low of $10.33 and a 12 month high of $13.28. The company has a market cap of $621.58 million, a price-to-earnings ratio of 49.39 and a beta of 1.07. The company has a quick ratio of 3.72, a current ratio of 3.72 and a debt-to-equity ratio of 5.43. The business has a fifty day simple moving average of $12.83 and a 200-day simple moving average of $12.59.

Gladstone Commercial (NASDAQ:GOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $0.11 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.07. The firm had revenue of $43.99 million during the quarter, compared to analyst estimates of $42.18 million. Gladstone Commercial had a net margin of 14.55% and a return on equity of 14.61%. Sell-side analysts predict that Gladstone Commercial will post 1.39 EPS for the current year.

Analysts Set New Price Targets

GOOD has been the topic of a number of recent research reports. Huntington started coverage on Gladstone Commercial in a research note on Wednesday, July 15th. They issued a "market perform" rating and a $13.00 target price on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gladstone Commercial in a research report on Monday, August 24th. Four analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, Gladstone Commercial presently has a consensus rating of "Hold" and an average target price of $12.83.

Gladstone Commercial Company Profile

Gladstone Commercial Corporation is a real estate investment trust (REIT) that acquires, owns and manages income-producing commercial real estate in the United States. The company primarily invests in office and industrial properties, including single-tenant and select multi-tenant facilities leased to business and government tenants.

Gladstone Commercial generally leases its properties under long-term arrangements and seeks to generate rental income through a diversified portfolio of commercial real estate.

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