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Amid high inflation, rising interest rates, and continuous geopolitical concerns, the equity markets may continue to be volatile this year. Therefore, stock market enthusiasts might explore dividend stocks because they can allow them to get a steady passive income regardless of market conditions. However, because payouts are not certain, investors must exercise caution.Highlights
- The management of Pizza Pizza Royalty intends to increase the number of its restaurants this year.
- In Q4 2022, Dream Residential's net income amounted to US$ 4.6 million.
- The net operating income of Dream Residential was US$ 5.7 million in Q4 2022.
Here are two stocks that pay dividends on a more regular basis. Let's see how they have performed:
Pizza Pizza Royalty (TSX: PZA) As a highly franchised company, Pizza Pizza Royalty can be explored for an investment portfolio. Franchisees pay royalties to the firm based on sales, not profits. Therefore, it is unlikely that excessive inflation will have much of an effect on its finances. The business had a strong year in 2022, with same-store sales and royalties pool sales increasing by 15.2 per cent and 15.1 per cent, respectively.
The reopening of unconventional restaurants, value messages, marketing campaigns, and pricing increases boosted its same-store sales. In addition to these marketing initiatives, the business opened 45 new restaurants during the year, which helped to increase revenues.
In Q4 2022, the company said its monthly cash dividend increased by 3.7 per cent, effective November. The fully diluted earnings per share (EPS) was C$ 0.2075, reflecting a growth of 15.3 per cent year-over-year (YoY).
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The management of Pizza Pizza Royalty intends to increase the number of its restaurants this year by 3-4%. Additionally, the company's sales in the upcoming quarters may be boosted by its inventive product introductions and inventive marketing techniques.
Dream Residential Real Estate Investment Trust (TSX: DRR) In March, the REIT announced its monthly distribution amount of US$ 0.035 per unit, and at the time of writing, the dividend yield was 5 per cent.
In Q4 2022, Dream Residential's net income amounted to US$ 4.6 million, of which the new rental income was US$ 1.8 million. Also, in line with its forecast, diluted funds from operations per unit were US$ 0.16.
The net operating income in Q4 2022 was US$ 5.7 million compared to US$ 5.8 million in the forecast. Meanwhile, the average monthly rent at the end of the December quarter was US$ 1,079 per unit compared to US$ 1,060 per unit at the end of the September quarter.
Notably, the company's total assets at the end of 2022 were US$ 432.5 million.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.