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nstone Real Estate Group SE (ETR:INS) has announced a dividend of €0.26 per share, a reduction from last year's comparable payment. This translates to an annual payout of 3.2% of the current stock price, in line with industry averages. While we're cautious about high dividend yields unless they can be sustained, Instone Real Estate Group has consistently covered its dividend payments with earnings.

    Looking ahead, EPS is forecast to grow by 68.1% over the next year, which should support a sustainable dividend payout ratio of around 21%. Historically, the company's dividend has been unstable, but with a relatively short history, it may be premature to draw conclusions about long-term sustainability.

    The payments have remained relatively stable since 2019, and while there was a cut in the past, it didn't significantly impact growth. However, EPS declined by around 18% per year over the past five years, indicating potential challenges for future dividend growth. Despite this, next year's earnings are expected to rise, which could support a more reliable dividend.

    Given the company's history of covering its dividend payments and the forecasted growth in earnings, we believe the dividend may prove reliable in the short term. However, with limited income growth potential and an unstable dividend history, Instone Real Estate Group is not our top pick for investors focused on income.