Shareholders of Chartwell Retirement Residences must act by November 29 to be eligible for the upcoming dividend payout scheduled for December 15. The company has declared a dividend of CA$0.051 per share, as investors weigh the sustainability of such distributions amid financial concerns.
The retirement residence operator is currently facing scrutiny over its dividend payments in light of recent financial performance. A significant portion of Chartwell's free cash flow, amounting to 78%, is being allocated to cover dividends. This raises questions about the company's ability to reinvest in its operations and maintain its dividend payments without compromising financial stability.
Moreover, the company has experienced a historical decline in earnings, coupled with a modest annual dividend growth rate of only 1.3%. These factors contribute to heightened investment risks that shareholders should take into account when evaluating the long-term prospects of their investment in Chartwell, especially as the deadline for dividend eligibility approaches.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.