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

Sunstone Hotel Investors, Inc. (NYSE:SHO) declared a quarterly dividend on Wednesday, November 13th,Wall Street Journal reports. Stockholders 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 dividend yield of 3.55%. The ex-dividend date of this dividend is Tuesday, December 31st.

Sunstone Hotel Investors has raised its dividend payment by an average of 68.7% annually over the last three years. Sunstone Hotel Investors has a dividend payout ratio of 133.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Sunstone Hotel Investors to earn $0.97 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 37.1%.

Sunstone Hotel Investors Stock Performance

Sunstone Hotel Investors stock opened at $10.13 on Friday. The company has a market capitalization of $2.06 billion, a P/E ratio of 13.33, a P/E/G ratio of 6.56 and a beta of 1.25. Sunstone Hotel Investors has a 1 year low of $9.39 and a 1 year high of $11.59. The business has a 50 day moving average of $10.34 and a 200-day moving average of $10.25. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.98 and a quick ratio of 3.75.

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

Analysts Set New Price Targets

A number of analysts have commented on SHO shares. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “underweight” rating to an “equal weight” rating and set a $10.50 price target for the company in a research note on Friday, September 13th. StockNews.com lowered shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a report on Thursday, August 1st. One analyst has rated the stock with a sell rating, four have given a hold rating, two have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $11.42.

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.