Insights into the Upcoming Dividend, Dividend History, and Sustainability
2020 Bulkers Ltd (TTBKF, Financial) recently announced a dividend of $0.05 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-24. 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 look into 2020 Bulkers Ltd's dividend performance and assess its sustainability.
What Does 2020 Bulkers Ltd Do?
2020 Bulkers Ltd is an owner and operator of large dry bulk vessels. The Company has eight Newcastlemax dry bulk vessels in operation.
A Glimpse at 2020 Bulkers Ltd's Dividend History
2020 Bulkers Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down 2020 Bulkers Ltd's Dividend Yield and Growth
As of today, 2020 Bulkers Ltd currently has a 12-month trailing dividend yield of 6.65% and a 12-month forward dividend yield of 6.54%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, 2020 Bulkers Ltd's annual dividend growth rate was 116.80%. Based on 2020 Bulkers Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of 2020 Bulkers Ltd stock as of today is approximately 6.65%.
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, 2020 Bulkers Ltd's dividend payout ratio is 1.07. This may suggest that the company's dividend may not be sustainable.
2020 Bulkers Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks 2020 Bulkers Ltd's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 3 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. 2020 Bulkers Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and 2020 Bulkers Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. 2020 Bulkers Ltd's revenue has increased by approximately 97.40% per year on average, a rate that outperforms approximately 98.58% of global competitors.
Next Steps
As the analysis shows, 2020 Bulkers Ltd has a strong dividend payment history and a fair growth outlook. However, the sustainability of the dividend is in question due to a high payout ratio and average profitability. Investors should consider these factors when making decisions about their portfolio. 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.
