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Klabin SA's Dividend Analysis

Exploring the Dividend Performance and Sustainability of Klabin SA (KLBAY)

Introduction to Klabin SA's Upcoming Dividend

Klabin SA (KLBAY) recently announced a dividend of $0.12 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-06. 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 Klabin SA's dividend performance and assess its sustainability.

What Does Klabin SA Do?

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Klabin SA operates in various segments of the pulp and paper industry, supplying domestic and foreign markets with wood, bleached pulp, packaging paper, paper sacks, and corrugated cardboard boxes. The firm organizes itself into four segments based on product type: Forestry, paper, conversion, and pulp. The Forestry segment involves operations related to planting and growing pine and eucalyptus trees and selling timber to third parties. The Paper Segment mainly involves the production of cardboard, Kraftliner, and recycled paper rolls and their sale. The Conversion Segment, which derives maximum revenue, involves the production of corrugated cardboard boxes, cardboard, and industrial bags and its sale. The Pulp Segment includes the production of short, long, and fluff fiber pulp and its sale.

Klabin SA's Dividend Analysis
Klabin SA's Dividend Analysis

A Glimpse at Klabin SA's Dividend History

Klabin SA has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Klabin SA's Dividend Analysis
Klabin SA's Dividend Analysis

Breaking Down Klabin SA's Dividend Yield and Growth

As of today, Klabin SA currently has a 12-month trailing dividend yield of 4.10% and a 12-month forward dividend yield of 4.31%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Klabin SA's annual dividend growth rate was 277.40%. Extended to a five-year horizon, this rate decreased to 17.20% per year. Based on Klabin SA's dividend yield and five-year growth rate, the 5-year yield on cost of Klabin SA stock as of today is approximately 9.07%.

Klabin SA's Dividend Analysis
Klabin SA's Dividend Analysis

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, Klabin SA's dividend payout ratio is 11.32. Klabin SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Klabin SA's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Klabin SA'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 Klabin SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Klabin SA's revenue has increased by approximately 14.50% per year on average, a rate that outperforms approximately 78.34% of global competitors.

Conclusion

The analysis of Klabin SA's dividend payments, growth rate, payout ratio, profitability, and growth metrics suggests a robust framework for sustained dividend returns to its shareholders. Investors seeking to explore further can utilize tools like the High Dividend Yield Screener available for GuruFocus Premium users.

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.