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Urstadt Biddle: Requiem For A Long Dividend Streak, And Hope For The Future

Published Thu, 11 Jun 2020 12:47:58 -0400 on Seeking Alpha

"Stock prices are only opinions, but dividends are facts." That was stated back in October, 2019. The situation has changed since then.
What are the facts surrounding UBA's 75% dividend cut? How long can it be expected to remain in the doldrums before bouncing back?
Things weren't as been as one would have guessed in Q2, which included both March and April for UBA.
I view the dividend cut as being due to management's desire to maintain the strength of the balance sheet as well as for financial flexibility during this difficult and uncertain period.
There are good reasons to hang onto shares and perhaps even to buy more.

Investment Thesis
On the investors webpage of shopping center REIT, Urstadt-Biddle Properties (UBA, UBP), the phrase "uninterrupted dividends since 1969" is proudly and prominently displayed. And in the REIT's 2019 annual report, the first page boasts "50 years of uninterrupted dividends" and "26 consecutive years of increased dividends."
Sadly, the dividend growth streak has come to an end, and if we define "uninterrupted" as equating to "uncut," that streak has ended, too. Though the company paid their regular Q1 dividend, they have decided to slash their Q2 dividend by 75%, from 28 cents per share to 7 cents per share (100% of taxable income). Management has stated that the Board's intention is to only pay out the REIT's taxable income (net income) for the foreseeable future, which means that UBA almost certainly won't be able to make up its reduced dividend in the second half of the year.
Thus marks another long, time-honored dividend streak ended by the ravages of the coronavirus pandemic.
"Stock prices are only opinions," says the first page of the latest annual report, "but dividends are facts."
Well, what are the facts surrounding this dividend cut? Should it prompt dividend-focused investors to sell shares and move on to other opportunities? Have the fundamentals of the company... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
URSTADT BIDDLE PROPERTIES 18.43   28.8 0.64 0.98 5.33


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