Assessing the Upcoming Dividend and Historical Performance of JBFCF
Jollibee Foods Corp (JBFCF, Financial) recently announced a dividend of $1.23 per share, payable on 2023-12-11, with the ex-dividend date set for 2023-11-24. 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 Jollibee Foods Corps dividend performance and assess its sustainability.
What Does Jollibee Foods Corp Do?
Jollibee Foods Corp is engaged in operating and franchising quick-service restaurants. The company has three business segments; The food service segment is involved in the operations of QSRs and the manufacture of food, products to be sold to JFC Group-owned and franchised QSR outlets, The franchising segment is involved in the franchising of the JFC Group's QSR store concepts, and The leasing segment leases store sites mainly to the JFC Group's independent franchisees. The group's geographical segments are based on the location of the assets producing revenues in the Philippines and in other locations which include PRC, USA, Canada, Vietnam, Singapore, Malaysia, Italy, UK, UAE, Hongkong, Macau, Brunei, Taiwan, and Australia.
A Glimpse at Jollibee Foods Corp's Dividend History
Jollibee Foods Corp has maintained a consistent dividend payment record since 2008. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Jollibee Foods Corp's Dividend Yield and Growth
As of today, Jollibee Foods Corp currently has a 12-month trailing dividend yield of 1.02% and a 12-month forward dividend yield of 1.08%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Jollibee Foods Corp's annual dividend growth rate was -3.80%. Extended to a five-year horizon, this rate decreased to -6.50% per year. And over the past decade, Jollibee Foods Corp's annual dividends per share growth rate stands at 2.00%.
Based on Jollibee Foods Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Jollibee Foods Corp stock as of today is approximately 0.73%.
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 2023-09-30, Jollibee Foods Corp's dividend payout ratio is 0.38.
Jollibee Foods Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Jollibee Foods Corp's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Jollibee Foods Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Jollibee Foods Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Jollibee Foods Corp's revenue has increased by approximately 5.40% per year on average, a rate that outperforms approximately 69.02% 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, Jollibee Foods Corp's earnings increased by approximately 21.10% per year on average, a rate that outperforms approximately 70.21% of global competitors.
Concluding Insights on Jollibee Foods Corp's Dividend Viability
In conclusion, Jollibee Foods Corp's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture of the company's financial health and its ability to maintain and potentially increase its dividend payouts. While the dividend growth rate has seen some fluctuation, the company's strong profitability and growth prospects may provide the necessary support for future dividend sustainability. Investors considering Jollibee Foods Corp as a potential addition to their portfolio for steady income should weigh these factors carefully. For those seeking to explore further, 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.
