Yahoo Finance Coloplast A/S's Dividend Analysis
An In-Depth Look at Coloplast A/S's Upcoming Dividend and Historical Performance
Coloplast A/S (CLPBY) recently announced a dividend of $0.07 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-17. 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 Coloplast A/S's dividend performance and assess its sustainability.
What Does Coloplast A/S Do?
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Coloplast is a leading global competitor in ostomy management and continence care. The firm designs, manufactures, and markets ostomy care systems, disposable containment devices, paste, powder, seals, and intermittent catheters for continence care. Coloplast also maintains a tertiary presence in the urology and woundcare markets, where it manufactures and markets penile implants, slings for incontinence and prolapse, and wound dressings. The company derives more than 60% of sales from Europe, 24% from other developed countries, and 17% from the rest of the world.
A Glimpse at Coloplast A/S's Dividend History
Coloplast A/S has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Coloplast A/S has increased its dividend each year since 2014. 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 10 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Coloplast A/S's Dividend Yield and Growth
As of today, Coloplast A/S currently has a 12-month trailing dividend yield of 2.44% and a 12-month forward dividend yield of 2.44%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Coloplast A/S's annual dividend growth rate was 5.60%. Extended to a five-year horizon, this rate decreased to 5.40% per year. And over the past decade, Coloplast A/S's annual dividends per share growth rate stands at an impressive 11.60%.
Based on Coloplast A/S's dividend yield and five-year growth rate, the 5-year yield on cost of Coloplast A/S stock as of today is approximately 3.17%.
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 2024-03-31, Coloplast A/S's dividend payout ratio is 0.91. And this may suggest that the company's dividend may not be sustainable.
Coloplast A/S's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Coloplast A/S's profitability 9 out of 10 as of 2024-03-31, 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. Coloplast A/S's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Coloplast A/S's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Coloplast A/S's revenue has increased by approximately 9.40% per year on average, a rate that outperforms approximately 55.42% 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, Coloplast A/S's earnings increased by approximately 4.50% per year on average, a rate that outperforms approximately 44.6% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.40%, which outperforms approximately 40.74% of global competitors.
Next Steps
Considering Coloplast A/S's consistent dividend payments, solid dividend growth rate, challenging payout ratio, strong profitability, and promising growth metrics, investors might find it an appealing candidate for their portfolios. However, the sustainability of its dividends, given the current payout ratio, is a critical factor to monitor. 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.
