NexPoint Residential Trust, Inc. (NYSE:NXRT) Announces Quarterly Dividend of $0.53

Key Points

• NexPoint announced a quarterly dividend of $0.53 per share, payable June 30 to holders of record on June 15, representing an annualized yield of about 7.4%.
• The dividend appears potentially unsustainable: NexPoint's current payout ratio is -182.8% and analysts' expected EPS (~$1.97) implies a future payout ratio of roughly 107.6%, meaning earnings may not cover the $2.12 annualized dividend.
• Market and analyst sentiment is cautious—shares traded near $28.73 with a $732M market cap and a high debt/equity of 5.27, and the consensus rating is "Reduce" (consensus target $34.75) after several hold/sell downgrades.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) announced a quarterly dividend on Tuesday, April 28th. Stockholders of record on Monday, June 15th will be given a dividend of 0.53 per share by the financial services provider on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 7.4%. The ex-dividend date is Monday, June 15th.

NexPoint Residential Trust has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 3 consecutive years. NexPoint Residential Trust has a dividend payout ratio of -182.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect NexPoint Residential Trust to earn $1.97 per share next year, which means the company may not be able to cover its $2.12 annual dividend with an expected future payout ratio of 107.6%.

NexPoint Residential Trust Stock Performance

Shares of NXRT traded up $2.37 during midday trading on Tuesday, reaching $28.73. 232,250 shares of the stock were exchanged, compared to its average volume of 212,749. The business's 50-day moving average price is $26.53 and its 200 day moving average price is $29.09. The company has a debt-to-equity ratio of 5.27, a current ratio of 2.27 and a quick ratio of 2.27. NexPoint Residential Trust has a twelve month low of $23.79 and a twelve month high of $38.93. The company has a market capitalization of $732.30 million, a price-to-earnings ratio of -22.62 and a beta of 1.18.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last posted its earnings results on Tuesday, April 28th. The financial services provider reported $0.68 EPS for the quarter, topping analysts' consensus estimates of ($0.34) by $1.02. NexPoint Residential Trust had a negative return on equity of 9.52% and a negative net margin of 12.74%.NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. On average, sell-side analysts expect that NexPoint Residential Trust will post 2.23 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

NXRT has been the topic of several recent research reports. Truist Financial dropped their price target on NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating on the stock in a research report on Wednesday, March 11th. Raymond James Financial restated an "underperform" rating on shares of NexPoint Residential Trust in a research report on Friday, February 27th. Zacks Research upgraded NexPoint Residential Trust from a "strong sell" rating to a "hold" rating in a research report on Friday, January 16th. Wall Street Zen cut NexPoint Residential Trust from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of NexPoint Residential Trust in a research report on Tuesday, April 21st. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $34.75.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single‐family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi‐family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single‐family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.

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