Sunstone Hotel Investors, Inc. (NYSE:SHO) to Issue Quarterly Dividend of $0.09

Sunstone Hotel Investors, Inc. (NYSE:SHO) announced a quarterly dividend on Tuesday, November 12th,Wall Street Journal reports. Investors of record on Tuesday, December 31st will be given a dividend of 0.09 per share by the real estate investment trust on Wednesday, January 15th. This represents a $0.36 dividend on an annualized basis and a yield of 3.01%. The ex-dividend date is Tuesday, December 31st.

Sunstone Hotel Investors has increased its dividend by an average of 68.7% per year over the last three years. Sunstone Hotel Investors has a dividend payout ratio of 150.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Sunstone Hotel Investors to earn $0.96 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 37.5%.

Sunstone Hotel Investors Stock Performance

Shares of SHO stock opened at $11.98 on Friday. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.98 and a quick ratio of 2.98. The company’s fifty day moving average price is $11.06 and its two-hundred day moving average price is $10.51. The firm has a market capitalization of $2.41 billion, a P/E ratio of 15.76, a P/E/G ratio of 6.45 and a beta of 1.25. Sunstone Hotel Investors has a 12 month low of $9.39 and a 12 month high of $12.41.

Sunstone Hotel Investors (NYSE:SHO) last issued its quarterly earnings results on Tuesday, November 12th. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.02). Sunstone Hotel Investors had a net margin of 18.61% and a return on equity of 9.04%. The business had revenue of $226.40 million during the quarter, compared to analysts’ expectations of $224.61 million. During the same period in the prior year, the company posted $0.23 EPS. The company’s revenue for the quarter was down 8.6% on a year-over-year basis. On average, research analysts anticipate that Sunstone Hotel Investors will post 0.79 earnings per share for the current fiscal year.

Analyst Ratings Changes

Separately, Wells Fargo & Company boosted their price objective on Sunstone Hotel Investors from $11.00 to $13.00 and gave the company an “equal weight” rating in a report on Monday, December 9th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Sunstone Hotel Investors presently has a consensus rating of “Hold” and a consensus target price of $12.20.

Sunstone Hotel Investors Company Profile

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.