Assessing the Sustainability of The Carlyle Group Inc's Dividend
The Carlyle Group Inc (CG, Financial) recently announced a dividend of $0.35 per share, payable on 2023-11-29, with the ex-dividend date set for 2023-11-20. 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 The Carlyle Group Inc's dividend performance and assess its sustainability.
What Does The Carlyle Group Inc Do?
The Carlyle Group is one of the world's largest alternative-asset managers, with $382.3 billion in total assets under management, including $273.0 billion in fee-earning AUM, at the end of September 2023. The company has three core business segments: private equity, global credit, and investment solutions. The firm primarily serves institutional investors and high-net-worth individuals. Carlyle operates through 29 offices across five continents, serving more than 2,900 active carry fund investors from 88 countries.
A Glimpse at The Carlyle Group Inc's Dividend History
The Carlyle Group Inc has maintained a consistent dividend payment record since 2012, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down The Carlyle Group Inc's Dividend Yield and Growth
As of today, The Carlyle Group Inc currently has a 12-month trailing dividend yield of 4.24% and a 12-month forward dividend yield of 4.40%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, The Carlyle Group Inc's annual dividend growth rate was -3.40%, which increased to -2.90% per year over a five-year horizon. The 10-year annual dividends per share growth rate stands at 2.20%. The 5-year yield on cost of The Carlyle Group Inc stock is approximately 3.66%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The Carlyle Group Inc's dividend payout ratio is 2.33 as of 2023-09-30, which may suggest concerns about the sustainability of the company's dividends. Additionally, The Carlyle Group Inc's profitability rank of 4 out of 10 indicates challenges in sustaining the dividend, given the company's earnings performance relative to peers. Despite reporting net profit in 9 out of the past 10 years, the profitability rank suggests caution.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. The Carlyle Group Inc's growth rank of 4 out of 10 indicates poor growth prospects, potentially impacting dividend sustainability. The company's revenue per share and 3-year revenue growth rate show a decline of approximately -25.30% per year on average, underperforming 81.57% of global competitors. The Carlyle Group Inc's 3-year EPS growth rate of 5.90% per year also underperforms 54.18% of global competitors. The 5-year EBITDA growth rate of 24.10% underperforms 22.63% of global competitors, adding to concerns about future dividend growth.
Engaging Conclusion: The Dividend Outlook for The Carlyle Group Inc
In conclusion, while The Carlyle Group Inc has a history of consistent dividend payments, the current analysis raises questions about the sustainability of its dividends. The negative dividend growth rate in recent years, coupled with a profitability rank that suggests challenges ahead, may concern investors. Additionally, the company's growth metrics do not paint an optimistic picture for future dividend increases. Investors should monitor The Carlyle Group Inc's financial health and growth prospects closely when considering the stock for its dividend potential. For those seeking high-dividend yield opportunities, GuruFocus Premium offers a High Dividend Yield Screener to discover promising investments.
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.
