A Deep Dive into Utz Brands Inc's Dividend History, Yield, and Growth Rates
Utz Brands Inc (UTZ, Financial) recently announced a dividend of $0.06 per share, payable on 2023-10-05, with the ex-dividend date set for 2023-09-15. 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 deep dive into Utz Brands Inc's dividend performance and assess its sustainability.
Understanding Utz Brands Inc
Utz Brands Inc is a snack food manufacturing company. It manufactures a diverse portfolio of salty snacks under popular brands including Utz, Zapp's, Golden Flake, Good Health, Boulder Canyon, Hawaiian, TORTIYAHS!, among others. The company's products include potato chips, pretzels, cheese snacks, pork skins, pub/party mixes, and veggie snacks. Its products are distributed nationally and internationally through grocery, mass merchant, club, convenience, drug, and other channels. It operates in the given segment: the manufacturing, distribution, marketing and sale of snack food products.
Tracing Utz Brands Inc's Dividend History
Utz Brands Inc has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Utz Brands Inc's Dividend Yield and Growth
As of today, Utz Brands Inc currently has a 12-month trailing dividend yield of 1.56% and a 12-month forward dividend yield of 1.58%. This suggests an expectation of increased dividend payments over the next 12 months.
Utz Brands Inc's dividend yield of 1.56% is near a 10-year high and outperforms than 34.6 of global competitors in the Consumer Packaged Goods industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Utz Brands Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Utz Brands Inc stock as of today is approximately 1.56%.
Is Utz Brands Inc's Dividend Sustainable? A Look at 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 2023-06-30, Utz Brands Inc's dividend payout ratio is 14.89, suggesting that the company's dividend may not be sustainable.
Utz Brands Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Utz Brands Inc's profitability 3 out of 10 as of 2023-06-30, suggesting that the dividend may not be sustainable. The company has reported net profit in 1 years out of past 10 years.
Future Outlook: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Utz Brands Inc's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Utz Brands Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Utz Brands Inc's revenue has increased by approximately 8.50% per year on average, a rate that outperforms than approximately 56.78% 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, Utz Brands Inc's earnings increased by approximately 74.10% per year on average, a rate that outperforms than approximately 90.47% of global competitors.
Conclusion
While Utz Brands Inc's consistent dividend payments, attractive yield, and robust earnings growth are promising, its low profitability and growth ranks, as well as a high payout ratio, raise concerns about the sustainability of its dividends. Therefore, investors should consider these factors carefully when making investment decisions.
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