Service Properties Trust (NASDAQ:SVC) to Issue $0.01 Quarterly Dividend

Key Points

• Service Properties Trust announced a quarterly dividend of $0.01 per share, payable on November 13th to stockholders of record as of October 27th, representing a 1.6% dividend yield.
• Currently, the company has a dividend payout ratio of -3.4%, indicating it cannot cover the dividend with earnings and depends on its balance sheet for payments.
• Research analysts have mixed ratings on SVC, with an average rating of "Reduce" and a consensus price target of $2.75 for the stock.

Service Properties Trust (NASDAQ:SVC - Get Free Report) declared a quarterly dividend on Thursday, October 9th, RTT News reports. Stockholders of record on Monday, October 27th will be paid a dividend of 0.01 per share by the real estate investment trust on Thursday, November 13th. This represents a c) dividend on an annualized basis and a dividend yield of 1.6%.

Service Properties Trust has a dividend payout ratio of -3.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Service Properties Trust to earn $1.14 per share next year, which means the company should continue to be able to cover its $0.04 annual dividend with an expected future payout ratio of 3.5%.

Service Properties Trust Trading Down 0.6%

Shares of NASDAQ:SVC opened at $2.47 on Thursday. Service Properties Trust has a 52-week low of $1.71 and a 52-week high of $4.81. The business has a 50-day moving average price of $2.68 and a 200-day moving average price of $2.45. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 5.79. The stock has a market cap of $411.31 million, a price-to-earnings ratio of -1.48 and a beta of 1.88.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The real estate investment trust reported $0.35 EPS for the quarter, beating the consensus estimate of $0.34 by $0.01. The business had revenue of $503.44 million during the quarter, compared to analysts' expectations of $497.53 million. Service Properties Trust had a negative net margin of 14.73% and a negative return on equity of 34.61%.

Analysts Set New Price Targets

A number of research analysts have issued reports on SVC shares. Zacks Research downgraded Service Properties Trust from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 19th. B. Riley restated a "neutral" rating and issued a $3.00 price target (up previously from $2.00) on shares of Service Properties Trust in a research note on Thursday, September 25th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Service Properties Trust in a report on Wednesday. Finally, Wells Fargo & Company raised Service Properties Trust to a "hold" rating in a report on Friday, October 3rd. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $2.75.

Service Properties Trust Company Profile

Service Properties Trust Nasdaq: SVC is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service.

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