This article first appeared on GuruFocus .
Evaluating the Sustainability of Macerich Co's Upcoming Payout
Macerich Co ( NYSE:MAC ) recently announced a total dividend of $0.17 per share, with the ex-dividend date set for 2026-09-14. This distribution includes a $0.17 per share cash dividend payable on 2026-09-28. For income-focused investors, the ex-dividend date is a critical deadline: shareholders must own the stock before this date to qualify for the payment. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's look into Macerich Co's dividend performance and assess its sustainability.
What Does Macerich Co Do?
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Macerich Co invests in premium mall assets. The company owns 28 regional malls in its consolidated portfolio and nine regional malls in its unconsolidated portfolio, along with a power center and six other real estate assets. The company's total portfolio spans 39.9 million square feet of gross leasable area and averaged $199 in sales per square foot over the 12 months ended in June 2026. As a real estate investment trust (REIT), Macerich is required to distribute a substantial portion of its taxable income to shareholders as dividends, which makes its payout policy a central element of the investment thesis for income-oriented value investors.
A Glimpse at Macerich Co's Dividend History
Macerich Co has maintained a consistent dividend payment record since 1994, a span of more than three decades that speaks to the company's long-standing commitment to returning capital to shareholders. Dividends are currently distributed on a quarterly basis, providing investors with a regular income stream. This lengthy track record is notable in the REIT sector, where dividend cuts are not uncommon during periods of retail disruption or elevated leverage. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Macerich Co's Dividend Yield and Growth
As of today, Macerich Co currently has a 12-month trailing dividend yield of 3.01% and a 12-month forward dividend yield of 3.01%. The identical trailing and forward yields suggest an expectation of the same dividend payments over the next 12 months. For value investors, this stability signals that management does not currently anticipate a change in the payout level, though it also implies limited near-term dividend growth embedded in the current share price.
Over the past three years, Macerich Co's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate decreased to -6.00% per year. And over the past decade, Macerich Co's annual dividends per share growth rate stands at -17.70%. This declining long-term trajectory reflects the substantial dividend reduction the company implemented in 2020 amid pandemic-driven mall closures, a reset from which the payout has only partially recovered. The contrast between recent modest growth and the steep decade-long decline highlights how sensitive this dividend has been to retail sector shocks.
Based on Macerich Co's dividend yield and five-year growth rate, the 5-year yield on cost of Macerich Co stock as of today is approximately 2.21%. Yield on cost measures the annual dividend return on an investment's original purchase price, adjusted for dividend growth over time. For long-term holders, this figure illustrates how the reduced payout has eroded the income-generating power of their original investment compared with the pre-2020 era.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, Macerich Co's dividend payout ratio is 0.00, a figure that is not applicable due to insufficient data for calculation. Investors should therefore rely on other metrics, such as cash flow and profitability trends, when gauging whether the current payout can be maintained.
Macerich Co's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Macerich Co's profitability 5 out of 10 as of 2026-06-30, suggesting fair profitability. The company has reported net profit in 5 years out of the past 10 years. This mixed record underscores the cyclical pressures facing mall REITs, where occupancy, rental rates, and asset valuations can swing sharply with consumer spending patterns and broader economic conditions.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Macerich Co's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. While a mid-tier ranking indicates neither exceptional expansion nor severe contraction, it implies that meaningful dividend increases may be difficult to achieve without a sustained improvement in the company's underlying operating performance.
Revenue is the lifeblood of any company, and Macerich Co's revenue per share , combined with the 3-year revenue growth rate , indicates a challenged revenue model. Macerich Co's revenue has increased by approximately -0.10% per year on average, a rate that underperforms approximately 64.85% of global competitors. Flat-to-declining revenue places pressure on the company's ability to fund distributions from operating cash flow alone.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Macerich Co's earnings increased by approximately -3.30% per year on average, a rate that underperforms approximately 62.86% of global competitors. Declining earnings per share, even at a modest pace, raises questions about the long-term trajectory of the dividend.
Lastly, the company's 5-year EBITDA growth rate of -1.50% underperforms approximately 70.63% of global competitors. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a widely used proxy for operating cash flow. A negative five-year trend in this metric suggests that the company's core operations have not generated expanding cash flows, which is a key consideration for investors evaluating the durability of future dividend payments.
Next Steps for Dividend Investors
Macerich Co's upcoming $0.17 per share dividend, payable on 2026-09-28 to shareholders of record before the 2026-09-14 ex-dividend date, continues a distribution history dating back to 1994. However, the company's long-term dividend growth rate of -17.70% over the past decade, flat revenue, declining EPS, and negative EBITDA growth present a cautious picture for income-focused investors. The fair profitability and growth ranks, combined with an unavailable payout ratio, suggest that dividend sustainability depends heavily on stabilization in mall fundamentals and the company's ability to reverse negative operating trends. Value investors should weigh Macerich Co's premium asset portfolio and long payment record against its weak growth metrics before committing capital. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener .
