Analysis of Dividend Performance, Yield, Growth, and Sustainability
World Kinect Corp (WKC, Financial) has recently announced a dividend of $0.14 per share, payable on October 16, 2023, with the ex-dividend date set for September 29, 2023. As investors eagerly anticipate this upcoming payout, it is essential to shine a light on the company's dividend history, yield, and growth rates. This article uses data from GuruFocus to delve into World Kinect Corp's dividend performance and evaluate its sustainability.
World Kinect Corp: A Brief Overview
World Kinect Corp is a global energy management company that provides supply fulfillment, energy procurement advisory services, and transaction and payment management solutions to commercial and industrial customers worldwide. The company sells and delivers liquid fuels, natural gas, electricity, renewable energy, and other sustainability solutions.
World Kinect Corp's Dividend History
World Kinect Corp has maintained a consistent dividend payment record since 1994, with dividends being distributed on a quarterly basis. The company has increased its dividend every year since 1995, earning it the status of a dividend aristocrat, a prestigious title awarded to companies that have consistently increased their dividends for at least 28 consecutive years. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
World Kinect Corp's Dividend Yield and Growth
As of today, World Kinect Corp has a 12-month trailing dividend yield of 2.47% and a 12-month forward dividend yield of 2.47%. This suggests an expectation of stable dividend payments over the next 12 months.
Over the past three years, World Kinect Corp's annual dividend growth rate was 13.00%. This rate increased to 18.90% per year when extended to a five-year horizon. Over the past decade, World Kinect Corp's annual dividends per share growth rate stands at an impressive 14.20%. Based on World Kinect Corp's dividend yield and five-year growth rate, the 5-year yield on cost of World Kinect Corp stock as of today is approximately 5.87%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio is a critical metric for assessing the sustainability of the dividend. This 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 June 30, 2023, World Kinect Corp's dividend payout ratio is 0.30.
World Kinect Corp's profitability rank of 7 out of 10 as of June 30, 2023, suggests good profitability prospects. The company has reported net profit in 9 out of the past 10 years.
World Kinect Corp's Growth Metrics
Robust growth metrics are crucial for ensuring the sustainability of dividends. World Kinect Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. World Kinect Corp's revenue has increased by approximately 19.40% per year on average, a rate that outperforms approximately 69.37% 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, World Kinect Corp's earnings increased by approximately -12.20% per year on average, a rate that outperforms approximately 19.68% of global competitors.
Conclusion
In conclusion, World Kinect Corp's consistent dividend payments, impressive growth rate, sustainable payout ratio, and strong profitability and growth metrics make it a compelling choice for income-focused investors. However, as always, investors should conduct their due diligence before making any investment decisions.
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