Understanding Howden Joinery Group PLC's Dividend Performance and Sustainability
Howden Joinery Group PLC (HWDJF, Financial) recently announced a dividend of $0.05 per share, payable on 2023-11-17, with the ex-dividend date set for 2023-10-12. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, this article provides an analysis of Howden Joinery Group PLC's dividend performance and its sustainability.
What Does Howden Joinery Group PLC Do?
Based in the U.K., Howden Joinery Group PLC manufactures, sources, and sells kitchen and joinery products. Its operations are primarily located in the United Kingdom, with a minor presence in France, Belgium, and the Republic of Ireland. The company mainly serves small, local homebuilders and generates most of its revenue from the U.K. Its products range from kitchen accessories and cabinets to ovens, refrigeration, dishwashers, laundry appliances, doors, frames, flooring, and bathroom cabinets.
A Glimpse at Howden Joinery Group PLC's Dividend History
Since 2021, Howden Joinery Group PLC has maintained a consistent dividend payment record, distributing dividends bi-annually. The following chart shows the annual Dividends Per Share for tracking historical trends.
Breaking Down Howden Joinery Group PLC's Dividend Yield and Growth
As of today, Howden Joinery Group PLC boasts a 12-month trailing dividend yield of 2.95% and a 12-month forward dividend yield of 3.03%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 19.00%. Based on these figures, the 5-year yield on cost of Howden Joinery Group PLC stock as of today is approximately 2.95%.
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 2023-06-30, Howden Joinery Group PLC's dividend payout ratio is 0.34.
Howden Joinery Group PLC's profitability rank is 10 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of the past ten years, further solidifying its high profitability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must have robust growth metrics. Howden Joinery Group PLC's growth rank of 10 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Howden Joinery Group PLC's revenue has increased by approximately 15.50% per year on average, a rate that outperforms approximately 81.16% 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, Howden Joinery Group PLC's earnings increased by approximately 23.50% per year on average, a rate that outperforms approximately 74.05% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 16.00% outperforms approximately 72.99% of global competitors.
Conclusion
In conclusion, Howden Joinery Group PLC's consistent dividend payments, impressive growth rate, low payout ratio, high profitability, and robust growth metrics suggest a promising future for the company's dividends. These factors indicate that the company is not only able to sustain its dividends but also has the potential for growth, making it an attractive option for value investors.
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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.
