Yahoo Finance Metso Corp's Dividend Analysis
Assessing the Sustainability and Growth of Metso Corp's Dividends
Metso Corp(OUKPY) recently announced a dividend of $0.1 per share, payable on 2024-05-22, 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 Metso Corp's dividend performance and assess its sustainability.
What Does Metso Corp Do?
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Metso Corp is a Finnish company. Its offering covers solutions in the aggregates, mining, and metals businesses. The company operates in two reportable segments such as aggregates and minerals. The aggregates segment offers its serving quarry and contractor customers by offering crushing and screening equipment to produce aggregates needed in construction and infrastructure projects. Minerals segment serves mining industry customers by providing equipment, process islands and plants for minerals processing, and hydrometallurgical and pyrometallurgical solutions for the recovery of metals. The company generates the majority of its revenue from the Minerals segment.
A Glimpse at Metso Corp's Dividend History
Metso Corp has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Metso Corp's Dividend Yield and Growth
As of today, Metso Corp currently has a 12-month trailing dividend yield of 2.82% and a 12-month forward dividend yield of 3.37%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Metso Corp's annual dividend growth rate was 44.20%. Based on Metso Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Metso Corp stock as of today is approximately 2.82%.
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, Metso Corp's dividend payout ratio is 0.46.
Metso Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Metso Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 7 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. Metso Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Metso Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Metso Corp's revenue has increased by approximately 13.10% per year on average, a rate that outperforms approximately 62.56% 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, Metso Corp's earnings increased by approximately 48.20% per year on average, a rate that outperforms approximately 79.49% of global competitors.
Engaging Conclusion: Metso Corp's Dividend Prospects
Considering Metso Corp's consistent dividend payments, robust dividend growth rate, and a prudent payout ratio, the company stands as an attractive prospect for value investors seeking stable income. Coupled with the company's fair profitability and growth metrics, Metso Corp appears poised to continue rewarding shareholders. Investors should, however, always consider the broader economic environment and sector-specific challenges that could influence future dividend sustainability. Will Metso Corp continue to deliver shareholder value amidst fluctuating market conditions? Only time will tell, but the current indicators provide a positive outlook.
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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.
