UMH Properties: A Steady Stream of Income

UMH Properties, Inc. (NYSE:UMH) has once again demonstrated its commitment to shareholders by declaring its quarterly cash dividends for both its common and preferred stock. On January 7, 2025, the company announced that it would pay a quarterly dividend of $0.215 per share on its common stock, with an annual dividend rate of $0.86 per share. Additionally, the company declared a quarterly dividend of $0.3984375 per share for the period from December 1, 2024, through February 28, 2025, on its 6.375% Series D Cumulative Redeemable Preferred Stock, payable at an annual rate of $1.59375 per share.



UMH Properties' consistent dividend growth is a testament to the company's strong financial performance and its ability to generate cash flow. The company's dividend yield of 6.9% is attractive to income-focused investors, providing a steady stream of cash distributions. Moreover, UMH Properties' payout ratio is relatively low, indicating that the company has room to continue growing its dividend while maintaining a strong balance sheet.



UMH Properties' dividend growth is driven by several key factors. First, the company has consistently increased its rental income through occupancy gains and rent increases. In 2024, UMH achieved a 9% increase in annual rental revenue, with a 280-unit increase in overall occupancy. Second, UMH has expanded its portfolio through acquisitions and developments, adding new homesites and rental homes. As of 2024, UMH owns and operates 139 manufactured home communities with approximately 26,200 developed homesites. Lastly, UMH has successfully executed its at-the-market sale program, raising capital to fund growth and dividend payments.

UMH Properties' dividend growth is supported by its strong financial performance and growth prospects. The company has increased its dividend for four consecutive years, with the dividend growing by approximately 19% during that period. Additionally, UMH's dividend payout ratio is relatively low, with a payout ratio of around 60% based on normalized FFO. This indicates that the company has room to continue growing its dividend while maintaining a strong balance sheet. Furthermore, UMH's exposure to the growing manufactured housing industry and its strategic position in the Marcellus and Utica Shale regions provide additional support for the sustainability of its dividend payout.

In conclusion, UMH Properties' consistent dividend growth and attractive yield make it an appealing choice for income-focused investors. The company's strong financial performance, driven by acquisitions and expansions, has enabled it to increase its dividend consistently. With a low payout ratio and exposure to a growing industry, UMH Properties is well-positioned to continue providing a steady stream of income to its shareholders.