Yahoo Finance Celanese Corp's Dividend Analysis
Insight into Celanese Corp's Upcoming Dividend and Financial Health
Celanese Corp(NYSE:CE) recently announced a dividend of $0.7 per share, payable on 2024-05-13, with the ex-dividend date set for 2024-04-26. 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 Celanese Corps dividend performance and assess its sustainability.
What Does Celanese Corp Do?
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Celanese is one of the world's largest producers of acetic acid and its downstream derivative chemicals, which are used in various end markets, including coatings and adhesives. The company is also one of the largest producers of specialty polymers, which are used in the automotive, electronics, medical, building, and consumer end markets. The company also makes cellulose derivatives used in cigarette filters.
A Glimpse at Celanese Corp's Dividend History
Celanese Corp has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Celanese Corp has increased its dividend each year since 2005. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 19 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Celanese Corp's Dividend Yield and Growth
As of today, Celanese Corp currently has a 12-month trailing dividend yield of 1.79% and a 12-month forward dividend yield of 1.79%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Celanese Corp's annual dividend growth rate was 4.10%. Extended to a five-year horizon, this rate increased to 5.80% per year. And over the past decade, Celanese Corp's annual dividends per share growth rate stands at an impressive 16.50%.
Based on Celanese Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Celanese Corp stock as of today is approximately 2.37%.
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, Celanese Corp's dividend payout ratio is 0.38.
Celanese Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Celanese Corp'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. Celanese Corp'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 Celanese Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Celanese Corp's revenue has increased by approximately 28.00% per year on average, a rate that outperforms approximately 87.81% 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, Celanese Corp's earnings increased by approximately 16.00% per year on average, a rate that outperforms approximately 60.98% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 11.50%, which outperforms approximately 57.41% of global competitors.
Conclusion: A Robust Dividend Profile
With a history of consistent and growing dividends, a reasonable payout ratio, and strong profitability and growth metrics, Celanese Corp presents a compelling case for dividend investors. The company's ability to sustain and increase its dividends is supported by solid financial health and a positive outlook on revenue and earnings growth. As value investors consider the potential for long-term income, Celanese Corp's dividend profile stands out as a noteworthy option. Will the company continue its dividend growth streak, and how will it adapt to future market challenges? These are critical considerations for investors as they weigh the prospects of adding CE to their portfolios. 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.
