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Sunstone Hotel Investors Inc. (SHO) logo

Sunstone Hotel Investors Inc.

S&P 500

SHO/Real Estate · REIT - Hotel & Motel/NYSE

Dividend Yield

3.04%

$0.36 · Annual Dividend

Stock Price$11.60P/E107.8MCap2.2BLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

59/ 100Caution

SHO's dividend shows some areas that warrant monitoring. Strengths include a 49.0% ffo payout ratio & 44.1% fcf payout ratio. Areas of concern: 1.5x interest coverage & 1.9% return on equity. The dividend has been growing at a 48.41% 5-year CAGR. As a REIT, its payout is measured against FFO (funds from operations) rather than net income, since large non-cash depreciation makes the earnings payout ratio misleading.

Based on 14 of 15 metrics

Strengths

  • FFO Payout Ratio: 49.0%Dividends are well covered by funds from operations (FFO).
  • Current Ratio: 2.7xStrong short-term liquidity to meet obligations.
  • Debt-to-Equity: 49.9Conservative debt level relative to equity.

Risks

  • Return on Equity: 1.9%Return on equity is below industry norms.
  • Dividend Cut: YesDividend was cut or suspended in recent history.
  • Interest Coverage: 1.5xInterest coverage is thin relative to debt servicing.

Payout & Coverage

Safe
49.0%Very Safe
50.1%Caution

Balance Sheet

Very Safe

Profitability

Caution
10.9%Caution
47.4%Safe

Dividend Track Record

Caution
4 yrsCaution
YesDanger
48.4%Very Safe
Mostly StableCaution

About Sunstone Hotel Investors Inc.

Sunstone Hotel Investors Inc. is a prominent real estate investment trust (REIT) specializing in the acquisition, ownership, and asset management of luxury, upper upscale, and upscale hospitality properties. Focused primarily on lodging in key markets across the United States, its portfolio comprises a range of iconic and premier hotels, often branded under esteemed names like Marriott, Hilton, and Hyatt. These properties are typically positioned within high-demand urban and resort locations, attracting both business and leisure travelers. Sunstone's primary function is to generate revenue through room bookings, food and beverage services, and event hosting, capitalizing on the tourism and travel sectors. The company plays a significant role in the commercial real estate market, offering investors exposure to real estate assets without the need for direct property management. Founded in 2004, Sunstone Hotel Investors Inc. continues to adjust its portfolio to reflect market trends and consumer preferences, aiming to maximize return on investment through strategic renovations, expansions, and acquisitions.

Dividend Overview

Dividend Yield

3.04%

Annual Dividend

$0.36

Frequency

Quarterly

Payout Ratio

327.27%

FCF Payout Ratio

44.06%

52-Week Range

$8.48 - $12.07

Dividend History (2016–2025)

SHO annual dividend per share and yield history

Earnings & Profitability

SHO earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

June 30, 2026

Next Payment Date

July 15, 2026

Dividend Growth

3-Year Dividend CAGR

53.26%

5-Year Dividend CAGR

48.41%

10-Year Dividend CAGR

-12.76%

3-Year Total Growth

260.00%

5-Year Total Growth

620.00%

10-Year Total Growth

-74.47%

Income Calculator

SHO Dividend Calculator

Total Investment

$1,160.00

Annual Income

$36.00

Quarterly Income

$9.00

Monthly Income

$3.00

Frequently Asked Questions

What is SHO's current dividend yield?
Sunstone Hotel Investors Inc. (SHO) currently has a dividend yield of 3.04%, based on a stock price of $11.60 and an annual dividend of $0.36.
When is SHO's next dividend payment date?
SHO's next ex-dividend date is 2026-06-30 and the next payment date is 2026-07-15. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does SHO pay in dividends per year?
Sunstone Hotel Investors Inc. paid $0.36 per share in annual dividends in 2025. The dividends are paid quarterly.
Has SHO been increasing its dividend?
Sunstone Hotel Investors Inc. has grown its dividend at a 5-year CAGR of 48.41% and a 10-year CAGR of -12.76%.
Is SHO's dividend safe?
Sunstone Hotel Investors Inc. has a payout ratio of 327.27%. Its free cash flow payout ratio is 44.06%. The payout ratio is above 100%, which may indicate the company is paying more in dividends than it earns. This could be unsustainable long-term.
How is SHO's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Sunstone Hotel Investors Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for real estate companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.