Here's Why Prologis Can Keep Raising Its Dividend
Dividend investors tend to flee stocks where there is an increasing risk of a dividend cut, and for good reason. So when a dividend stock starts to fall hard, you need to start paying extra attention.
Shares of warehouse landlord Prologis (NYSE: PLD) are down 30% so far in 2022. Here's why you don't need to worry about a dividend cut, and should probably be expecting the payment to keep growing.
Real estate investment trust (REIT) Prologis paid a third-quarter 2022 dividend of $0.79 per share. It posted core funds from operations (FFO) of $1.73 per share. That means the core FFO payout ratio was roughly 45%. That's a very strong payout ratio for any company -- and a REIT has to pay out 90% of its taxable income as a dividend in order to maintain its REIT status (and avoid corporate-level taxation).
Source Fool.com
