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Alaris Equity Partners Income Trust (TSE:AD.UN) Will Pay A Larger Dividend Than Last Year At CA$0.37

Simply Wall St · 2d ago

Alaris Equity Partners Income Trust's (TSE:AD.UN) dividend will be increasing from last year's payment of the same period to CA$0.37 on 15th of January. This will take the dividend yield to an attractive 7.1%, providing a nice boost to shareholder returns.

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Alaris Equity Partners Income Trust's Future Dividend Projections Appear Well Covered By Earnings

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Prior to this announcement, Alaris Equity Partners Income Trust's earnings easily covered the dividend, but free cash flows were negative. With the company not bringing in any cash, paying out to shareholders is bound to become difficult at some point.

Looking forward, earnings per share could rise by 18.8% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the payout ratio will be 31%, which is in the range that makes us comfortable with the sustainability of the dividend.

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TSX:AD.UN Historic Dividend December 25th 2025

See our latest analysis for Alaris Equity Partners Income Trust

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was CA$1.50 in 2015, and the most recent fiscal year payment was CA$1.48. Dividend payments have shrunk at a rate of less than 1% per annum over this time frame. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. We are encouraged to see that Alaris Equity Partners Income Trust has grown earnings per share at 19% per year over the past five years. Alaris Equity Partners Income Trust definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Our Thoughts On Alaris Equity Partners Income Trust's Dividend

In summary, while it's always good to see the dividend being raised, we don't think Alaris Equity Partners Income Trust's payments are rock solid. While Alaris Equity Partners Income Trust is earning enough to cover the payments, the cash flows are lacking. Overall, we don't think this company has the makings of a good income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Alaris Equity Partners Income Trust that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.