Understanding the Dividend Dynamics of Vishay Intertechnology Inc
Vishay Intertechnology Inc (VSH, Financial) recently announced a dividend of $0.1 per share, payable on 2023-12-27, with the ex-dividend date set for 2023-12-12. 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 Vishay Intertechnology Inc's dividend performance and assess its sustainability.
What Does Vishay Intertechnology Inc Do?
Vishay Intertechnology Inc provides a broad product portfolio of discrete semiconductors and passive electronic components to original equipment manufacturers and distributors. These products are found in industrial, computing, automotive, consumer, telecommunications, power supplies, military, aerospace, and medical markets and serve customer worldwide. Its product segments consist of two general classes: semiconductors and passive components. The company's operating segment includes metal oxide semiconductor field-effect transistors, diodes, optoelectronic components, resistors, inductors, and capacitors. Revenue mainly comes from resistors, which are basic components used in all forms of electronic circuitry to adjust and regulate levels of voltage and current.
A Glimpse at Vishay Intertechnology Inc's Dividend History
Vishay Intertechnology Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Vishay Intertechnology Inc's Dividend Yield and Growth
As of today, Vishay Intertechnology Inc currently has a 12-month trailing dividend yield of 1.73% and a 12-month forward dividend yield of 1.73%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Vishay Intertechnology Inc's annual dividend growth rate was 2.60%. Extended to a five-year horizon, this rate increased to 8.30% per year. Based on Vishay Intertechnology Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Vishay Intertechnology Inc stock as of today is approximately 2.58%.
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, Vishay Intertechnology Inc's dividend payout ratio is 0.16. Vishay Intertechnology Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Vishay Intertechnology Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Vishay Intertechnology Inc'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 Vishay Intertechnology Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Vishay Intertechnology Inc's revenue has increased by approximately 9.70% per year on average, a rate that underperforms than approximately 56.44% 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, Vishay Intertechnology Inc's earnings increased by approximately 35.90% per year on average, a rate that underperforms than approximately 40.23% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 11.90%, which underperforms than approximately 61.9% of global competitors.
Next Steps
In conclusion, Vishay Intertechnology Inc's consistent dividend payments, moderate growth rate, low payout ratio, and good profitability rank present a picture of a company with a stable dividend profile. However, when considering future prospects, investors should weigh the underperformance in revenue and earnings growth rates against the broader market. The company's ability to maintain its dividend in the face of these growth challenges will be critical for long-term investors. For those seeking to expand their portfolio with dividend-paying stocks, Vishay Intertechnology Inc might be a company to watch, especially with its solid track record and potential for future growth. 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.
