Yahoo Finance DMCI Holdings Inc's Dividend Analysis
Assessing the Sustainability and Growth of DMCI Holdings Inc's Dividends
DMCI Holdings Inc (DMCHY) recently announced a dividend of $0.08 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-04-19. 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 DMCI Holdings Inc's dividend performance and assess its sustainability.
What Does DMCI Holdings Inc Do?
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DMCI Holdings is an engineering conglomerate in the Philippines, operating in construction, real estate, coal mining, nickel mining, power generation, and water distribution businesses. The activities of the company include construction-related businesses such as the production and trading of concrete products, exploration, mining, and development of coal resources, mining and selling nickel ore, residential development, power generation through coal-fired power plants and satellite power plants, and water services. It organizes its business into seven operating segments: constructions and others; coal mining; nickel mining; real estate; on-grid power; off-grid power; and water. It generates the majority of its revenue is generated from the coal mining segment.
A Glimpse at DMCI Holdings Inc's Dividend History
DMCI Holdings Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down DMCI Holdings Inc's Dividend Yield and Growth
As of today, DMCI Holdings Inc currently has a 12-month trailing dividend yield of 6.70% and a 12-month forward dividend yield of 10.95%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, DMCI Holdings Inc's annual dividend growth rate was 38.40%. Extended to a five-year horizon, this rate decreased to 11.80% per year. And over the past decade, DMCI Holdings Inc's annual dividends per share growth rate stands at 4.00%.
Based on DMCI Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of DMCI Holdings Inc stock as of today is approximately 11.70%.
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, DMCI Holdings Inc's dividend payout ratio is 0.73, which may suggest that the company's dividend may not be sustainable.
DMCI Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks DMCI Holdings Inc's profitability 9 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. DMCI Holdings Inc'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 DMCI Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. DMCI Holdings Inc's revenue has increased by approximately 22.00% per year on average, a rate that outperforms approximately 81.33% 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, DMCI Holdings Inc's earnings increased by approximately 62.00% per year on average, a rate that outperforms approximately 86.93% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 24.70%, which outperforms approximately 76.86% of global competitors.
Engaging Conclusion
In conclusion, DMCI Holdings Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture for investors. While the payout ratio may raise questions about dividend sustainability, the company's strong profitability and growth metrics suggest a capacity to maintain, if not increase, its dividends in the future. This is further supported by the company's solid dividend history and the expectation of higher dividend payments. As value investors assess DMCI Holdings Inc's investment potential, they must consider these factors in their analysis. Will DMCI Holdings Inc continue to reward shareholders with growing dividends? Only time will tell, but the signs are promising.
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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.
