Understanding ABM Industries Inc's Upcoming Dividend Payout
ABM Industries Inc(ABM, Financial) recently announced a dividend of $0.23 per share, payable on 2024-02-05, with the ex-dividend date set for 2024-01-03. 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 ABM Industries Inc's dividend performance and assess its sustainability.
What Does ABM Industries Inc Do?
ABM Industries Inc is a provider of integrated facility solutions. It offers its solutions through five segments: Business and Industry, Manufacturing and Distribution, Education, Aviation, and Technical solutions. The company derives the majority of its revenue from the business and industry segment, which encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues, as well as vehicle maintenance and other services to rental car providers. ABM Industries Inc mainly operates in the United States of America.
A Glimpse at ABM Industries Inc's Dividend History
ABM Industries Inc has maintained a consistent dividend payment record since 1968, with dividends currently distributed on a quarterly basis. ABM Industries Inc has also achieved the status of a dividend king, signifying its impressive track record of increasing dividends each year for at least the past 56 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ABM Industries Inc's Dividend Yield and Growth
As of today, ABM Industries Inc currently has a 12-month trailing dividend yield of 1.96% and a 12-month forward dividend yield of 2.01%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, ABM Industries Inc's annual dividend growth rate was 5.90%, which decreased to 4.10% per year over a five-year horizon. Over the past decade, ABM Industries Inc's annual dividends per share growth rate stands at 3.40%.
Based on ABM Industries Inc's dividend yield and five-year growth rate, the 5-year yield on cost of ABM Industries Inc stock as of today is approximately 2.40%.
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. As of 2023-10-31, ABM Industries Inc's dividend payout ratio is 0.23, indicating a conservative approach to dividend distribution. This 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.
ABM Industries Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. With a rank of 7 out of 10 as of 2023-10-31, ABM Industries Inc shows good profitability prospects, supported by a decade of positive net income.
Growth Metrics: The Future Outlook
ABM Industries Inc's growth rank of 7 out of 10 indicates that the company's growth trajectory is good relative to its competitors. The company's revenue model is strong, with an average annual revenue growth rate of 11.10% over the past three years, outperforming approximately 69.03% of global competitors. Additionally, ABM Industries Inc's 3-year EPS growth rate of 24.60% per year on average outperforms approximately 70.5% of global competitors. The company's 5-year EBITDA growth rate of 14.10% also outperforms about 65.54% of global competitors, reinforcing its potential for sustained dividend payments.
Next Steps
In conclusion, ABM Industries Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, solid profitability, and strong growth metrics paint a promising picture for value investors. The company's disciplined approach to dividend distribution, coupled with its ability to grow earnings and revenue, suggests that ABM Industries Inc is well-positioned to continue rewarding shareholders with reliable dividends. Investors seeking to expand their portfolio with high-dividend yield stocks can find valuable opportunities using tools like the High Dividend Yield Screener available to GuruFocus Premium users.
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.
