Service Properties Trust (NASDAQ:SVC) Announces Quarterly Dividend of $0.01

Service Properties Trust (NASDAQ:SVC) declared a quarterly dividend on Wednesday, October 16th, Zacks reports. Stockholders of record on Monday, October 28th will be paid a dividend of 0.01 per share by the real estate investment trust on Thursday, November 14th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date of this dividend is Monday, October 28th.

Service Properties Trust has a payout ratio of -4.3% indicating that 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 $1.26 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 3.2%.

Service Properties Trust Trading Down 2.7 %

Shares of SVC stock opened at $3.62 on Friday. The business has a 50-day moving average of $4.51 and a 200 day moving average of $5.16. The company has a debt-to-equity ratio of 3.98, a current ratio of 0.01 and a quick ratio of 0.01. Service Properties Trust has a 1-year low of $3.44 and a 1-year high of $8.72. The stock has a market capitalization of $600.52 million, a PE ratio of -2.97 and a beta of 2.20.

Service Properties Trust (NASDAQ:SVC) last released its quarterly earnings data on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. The company had revenue of $512.95 million for the quarter, compared to analysts’ expectations of $509.33 million. During the same period last year, the company posted $0.58 EPS. As a group, sell-side analysts anticipate that Service Properties Trust will post 1.21 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SVC. B. Riley dropped their price target on shares of Service Properties Trust from $9.00 to $8.00 and set a “buy” rating for the company in a research report on Friday, August 9th. Wells Fargo & Company dropped their target price on shares of Service Properties Trust from $5.00 to $4.00 and set an “underweight” rating for the company in a report on Friday, September 13th.

About Service Properties Trust

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.