Understanding Bid Corp Ltd's Upcoming Dividend Payout
Bid Corp Ltd (BDDDY, Financial) recently announced a dividend of $0.27 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-21. 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 delve into Bid Corp Ltd's dividend performance and assess its sustainability.
What Does Bid Corp Ltd Do?
Bid Corp Ltd is a foodservice company. The company distributes chilled and frozen foods, fresh produce, meats, and nonfood products to operators around the globe. The company has various business segments, several of which it divides by geographic region. Its business segments include Australasia, the United Kingdom, Europe, and Emerging Markets. The company generates the vast majority of its revenue from Europe.
A Glimpse at Bid Corp Ltd's Dividend History
Bid Corp Ltd has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bid Corp Ltd's Dividend Yield and Growth
As of today, Bid Corp Ltd currently has a 12-month trailing dividend yield of 2.04% and a 12-month forward dividend yield of 2.17%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bid Corp Ltd's annual dividend growth rate was 8.40%. Based on Bid Corp Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Bid Corp Ltd stock as of today is approximately 2.04%.
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, Bid Corp Ltd's dividend payout ratio is 0.41.
Bid Corp Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bid Corp Ltd's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Bid Corp Ltd'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 Bid Corp Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bid Corp Ltd's revenue has increased by approximately 17.60% per year on average, a rate that outperforms approximately 85.17% 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, Bid Corp Ltd's earnings increased by approximately 42.90% per year on average, a rate that outperforms approximately 85.77% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 8.40%, which outperforms approximately 42.61% of global competitors, also supports the positive outlook.
Conclusion: Dividend Durability and Growth Prospects
With a solid track record of dividend payments, a reasonable payout ratio, and strong profitability, Bid Corp Ltd appears well-positioned to continue rewarding its investors with sustainable dividends. The company's robust growth metrics further reinforce the potential for future dividend increases. Investors seeking to expand their portfolio with dividend-paying stocks should consider the promising prospects of Bid Corp Ltd. Will the company's strategic initiatives and market position enable it to maintain its dividend growth trajectory in the years to come?
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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.
