Sunstone Hotel Investors, Inc. (NYSE:SHO) to Issue Dividend Increase – $0.09 Per Share

Sunstone Hotel Investors, Inc. (NYSE:SHO) announced a quarterly dividend on Monday, May 6th, Zacks reports. Stockholders of record on Friday, June 28th will be given a dividend of 0.09 per share by the real estate investment trust on Monday, July 15th. This represents a $0.36 annualized dividend and a dividend yield of 3.41%. The ex-dividend date of this dividend is Friday, June 28th. This is a positive change from Sunstone Hotel Investors’s previous quarterly dividend of $0.07.

Sunstone Hotel Investors has raised its dividend payment by an average of 68.7% per year over the last three years and has increased its dividend every year for the last 1 years. Sunstone Hotel Investors has a payout ratio of 96.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities research analysts expect Sunstone Hotel Investors to earn $0.95 per share next year, which means the company should continue to be able to cover its $0.28 annual dividend with an expected future payout ratio of 29.5%.

Sunstone Hotel Investors Trading Up 2.0 %

Shares of NYSE:SHO traded up $0.21 during midday trading on Tuesday, hitting $10.57. 342,114 shares of the stock were exchanged, compared to its average volume of 1,888,404. The business’s 50-day moving average price is $10.83 and its 200 day moving average price is $10.52. The company has a debt-to-equity ratio of 0.43, a quick ratio of 7.03 and a current ratio of 7.03. The stock has a market capitalization of $2.15 billion, a price-to-earnings ratio of 11.14, a P/E/G ratio of 3.98 and a beta of 1.22. Sunstone Hotel Investors has a 12 month low of $8.61 and a 12 month high of $11.59.

Sunstone Hotel Investors (NYSE:SHO) last posted its quarterly earnings data on Friday, February 23rd. The real estate investment trust reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.44. The company had revenue of $219.20 million for the quarter, compared to analyst estimates of $192.56 million. Sunstone Hotel Investors had a return on equity of 11.32% and a net margin of 20.95%. The firm’s quarterly revenue was down 10.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.26 earnings per share. Analysts predict that Sunstone Hotel Investors will post 0.85 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have issued reports on SHO. Truist Financial boosted their price target on Sunstone Hotel Investors from $12.00 to $13.00 and gave the company a “hold” rating in a research note on Thursday, March 14th. Compass Point raised Sunstone Hotel Investors from a “sell” rating to a “neutral” rating and upped their target price for the stock from $10.00 to $12.00 in a research report on Tuesday. Finally, StockNews.com raised Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research report on Thursday, March 21st. Two research analysts have rated the stock with a sell rating and six have issued a hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $10.50.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.