Exploring the Sustainability and Growth Metrics of KRIUF's Dividend
The Keg Royalties Income Fund (KRIUF, Financial) recently announced a dividend of $0.1 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-19. As investors anticipate this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, let's delve into The Keg Royalties Income Fund's dividend performance and evaluate its sustainability.
Understanding The Keg Royalties Income Fund
The Keg Royalties Income Fund is a Canada-based company operating in the restaurant sector. Its core activity revolves around operating and franchising Keg steakhouses and bar restaurants in Canada and the United States. The company targets individuals seeking a premium casual dining experience.
Examining The Keg Royalties Income Fund's Dividend History
The Keg Royalties Income Fund has maintained a consistent dividend payment record since 2010, with dividends currently distributed on a monthly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Decoding The Keg Royalties Income Fund's Dividend Yield and Growth
As of today, The Keg Royalties Income Fund has a 12-month trailing dividend yield of 8.95% and a 12-month forward dividend yield of 8.88%, indicating an expectation of decreased dividend payments over the next 12 months.
When extended to a five-year horizon, this rate decreases to -4.80% per year. Over the past decade, The Keg Royalties Income Fund's annual dividends per share growth rate was -1.40%. Based on these metrics, the 5-year yield on cost of The Keg Royalties Income Fund stock as of today is approximately 7.00%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To gauge the sustainability of the dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio reveals the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a substantial part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, The Keg Royalties Income Fund's dividend payout ratio is 1.23, suggesting the company's dividend may not be sustainable.
The Keg Royalties Income Fund's profitability rank of 6 out of 10 as of 2023-06-30 indicates fair profitability. The company reported net profit in 9 out of the past 10 years.
Reviewing Growth Metrics: The Future Outlook
The Keg Royalties Income Fund's growth rank of 6 out of 10 suggests a fair growth outlook. The company's 3-year EPS growth rate shows its ability to grow its earnings, an essential component for sustaining dividends in the long run. Over the past three years, The Keg Royalties Income Fund's earnings increased by approximately -25.60% per year on average, outperforming approximately 21.49% of global competitors.
Concluding Thoughts
In conclusion, while The Keg Royalties Income Fund offers a high dividend yield, its sustainability is questionable due to its high payout ratio. Although the company's profitability and growth metrics are fair, the negative EPS growth rate raises concerns about its ability to maintain its dividend payments in the long run. Therefore, investors should consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
