Yahoo Finance Brambles Ltd's Dividend Analysis
Insight into Brambles Ltd's Upcoming Dividend and Financial Health
Brambles Ltd (BXBLY) recently announced a dividend of $0.3 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-03-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Brambles Ltd's dividend performance and assess its sustainability.
What Does Brambles Ltd Do?
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Brambles is the world's largest supplier of reusable wooden pallets for the fast-moving consumer goods, fresh produce, beverage, retail, and general manufacturing industries. Brambles' services primarily operate under the Chep brand. The operation spans approximately 60 countries with three geographical segments: Chep Americas, Chep EMEA, and Chep Asia-Pacific.
A Glimpse at Brambles Ltd's Dividend History
Brambles Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Brambles Ltd's Dividend Yield and Growth
As of today, Brambles Ltd currently has a 12-month trailing dividend yield of 2.56% and a 12-month forward dividend yield of 2.88%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Brambles Ltd's annual dividend growth rate was 10.40%. Extended to a five-year horizon, this rate decreased to 2.30% per year. And over the past decade, Brambles Ltd's annual dividends per share growth rate stands at 0.90%.
Based on Brambles Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Brambles Ltd stock as of today is approximately 2.87%.
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 2023-12-31, Brambles Ltd's dividend payout ratio is 0.51.
Brambles Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Brambles Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Brambles Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Brambles Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Brambles Ltd's revenue has increased by approximately 13.70% per year on average, a rate that outperforms approximately 73.06% of global competitors.
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, Brambles Ltd's earnings increased by approximately 14.90% per year on average, a rate that outperforms approximately 56.4% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 4.20%, which outperforms approximately 38.53% of global competitors.
Concluding Thoughts on Brambles Ltd's Dividend Profile
In conclusion, Brambles Ltd's upcoming dividend, consistent history of payments, and promising dividend growth rate speak to its commitment to shareholder returns. The company's moderate payout ratio, coupled with high profitability and solid growth metrics, suggest that its dividends are sustainable. These financial health indicators, when considered alongside the company's strategic position as a leading supplier in its industry, paint a reassuring picture for value investors focused on dividend income. With the prospects of Brambles Ltd looking favorable, investors may find it to be a compelling addition to their income-generating portfolio. Will Brambles Ltd continue to deliver shareholder value through its dividend policy in the years to come?
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
