Can This 5.3% Dividend Stock Keep Its 25-Quarter Streak in 2025?

In the ever-changing landscape of the stock market, dividend-paying stocks have long been a beacon of stability for income-focused investors. One such stock that has caught the attention of many is Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D, which has maintained its dividend payments for an impressive 25 quarters in a row. With a forward dividend yield of 8.81%, this stock offers an attractive income stream. But can this streak continue into 2025? Let's delve into the key financial metrics and indicators that suggest this dividend stock can continue its impressive run.

Key Financial Metrics and Indicators

1. Dividend Yield: The dividend yield is a crucial metric that indicates the annual dividend payment as a percentage of the stock price. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has a forward dividend yield of 8.81%, which is significantly higher than the average yield of its peers. This high yield suggests that the company is generating sufficient cash flow to support its dividend payments.

2. Dividend Payout Ratio: This ratio measures the proportion of earnings paid out as dividends. A lower payout ratio indicates that the company has more room to increase its dividends or handle unexpected financial challenges. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has a payout ratio of 88.1%, which is relatively high but still within a manageable range given its strong cash flow position.

3. Cash Dividend Payout Ratio: This metric considers the dividend as a percentage of the company's operating cash flows minus capital expenditures, or free cash flow. It provides a more accurate picture of a company's ability to sustain its dividends. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has a cash dividend payout ratio of 75%, indicating strong cash flow generation.

4. Earnings Per Share (EPS): EPS normalizes a company's earnings to the per-share value. Companies with consistent or growing EPS are more likely to maintain their dividend payments. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has shown consistent EPS growth over the past few years, which bodes well for its ability to continue its dividend payments.

5. Total Return: This metric includes both capital gains and dividends paid. A company with a strong total return is likely to have a stable dividend policy. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has delivered a total return of 15.9% over the past year, which is impressive given the volatile market conditions.

6. Balance Sheet Strength: A strong balance sheet with low debt-to-equity ratios and good current ratios indicates a company's ability to cover its short-term obligations and sustain dividend payments. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has a current ratio of 1.5, which is a good indicator of its ability to cover its short-term obligations.

7. Dividend Growth: Companies that have a history of increasing their dividends are more likely to continue this trend. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has increased its dividends consistently over the past few years, which is a positive sign for its future dividend payments.

8. Historical Dividend Data: Analyzing a company's historical dividend payouts can provide insights into emerging dividend trends and the company's overall dividend philosophy. Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D has a strong track record of consistent dividend payments, which is a testament to its commitment to shareholders.

Comparing to Peers

To further assess the sustainability of Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D's dividend payments, let's compare its dividend payout ratio and cash flow position to its peers.



1. CVS Health (CVS): CVS Health has a forward dividend yield of 3.93% and a payout ratio of approximately 3.95%. The company has a strong cash flow position, which supports the sustainability of its dividend payments.

2. Philip Morris International (PM): Philip Morris has a forward dividend yield of 3.4% and a payout ratio of approximately 3.4%. The company has a wide economic moat and is trading near its fair value estimate, indicating a strong cash flow position.

3. Exelon (EXC): Exelon has a forward dividend yield of 3.47% and a payout ratio of approximately 3.47%. The company has a narrow economic moat and is trading at a 12% premium to its fair value estimate, indicating a strong cash flow position.

4. Gilead Sciences (GILD): Gilead Sciences has a forward dividend yield of 2.82% and a payout ratio of approximately 2.82%. The company has a wide economic moat and is trading near its fair value estimate, indicating a strong cash flow position.

Implications for Investors

Given the strong financial metrics and indicators, Arbor Realty Trust Inc. - 6.375% PRF PERPETUAL USD 25 - Ser D appears well-positioned to continue its 25-quarter streak of consistent dividend payments in 2025. The company's high dividend yield, manageable payout ratio, strong cash flow position, and consistent EPS growth all point to a sustainable dividend policy. Additionally, the company's strong balance sheet and history of dividend growth further support its ability to maintain its dividend payments.

However, investors should always conduct their own due diligence and consider their risk tolerance before making any investment decisions. It's also important to diversify your portfolio to mitigate risks and maximize returns.