Gladstone Land Corporation: Profit From Farmland And Vineyards With This Monthly Dividend Stock

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LAND Dividend

Source: June 2017 Investor Presentation, page 18

Monthly dividends from the last quarter were up 1% from the same three-month period last year.

The dividend appears secure. LAND had adjusted FFO-per-share of $0.561 over the past four quarters, compared with the current annualized dividend payout of $0.528. This results in a trailing FFO payout ratio of 94%.

LAND’s payout ratio is high, at almost 100% of FFO. The dividend does not have much room for error. A significant decrease in FFO could endanger the dividend.

However, LAND has positive long-term growth potential, thanks to the strong economics of U.S. farmland. If FFO continues to grow, the dividend would be sustainable.

Final Thoughts

The rising global population and falling supply of available farmland in the U.S., sets up a very profitable future for LAND. Supply and demand factors support continued farmland investment.

LAND pays an attractive dividend yield of 4.2%, with the potential for dividend increases each year at a rate above inflation.

As a result, LAND is a worthwhile addition to an income-focused portfolio, for diversification and dividend income.

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Disclosure: Sure Dividend is published as an information service. It includes opinions as to buying, selling and holding various stocks and other securities.

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