Assessing the Sustainability of Dynacor Group Inc's Upcoming Dividend
Dynacor Group Inc (DNGDF, Financial) recently announced a dividend of $0.01 per share, payable on 2024-01-17, with the ex-dividend date set for 2024-01-08. 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 Dynacor Group Inc's dividend performance and assess its sustainability.
What Does Dynacor Group Inc Do?
Dynacor Group Inc is a dividend-paying gold production corporation. It is engaged in production activity through its government-approved ore processing operations. The company's operating segment is the mining sector, which is comprised of the exploration, evaluation, and processing of mineral resources. It produces and explores various properties in Peru such as Tumipampa and Anta. The company currently operates the plant in Veta Dorada. The firm generates revenue from the sales of precious metals derived from the ore processing operation.
A Glimpse at Dynacor Group Inc's Dividend History
Dynacor Group Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Dynacor Group Inc's Dividend Yield and Growth
As of today, Dynacor Group Inc currently has a 12-month trailing dividend yield of 3.03% and a 12-month forward dividend yield of 3.56%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Dynacor Group Inc's annual dividend growth rate was 32.60%. Based on Dynacor Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Dynacor Group Inc stock as of today is approximately 3.03%.
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, Dynacor Group Inc's dividend payout ratio is 0.23. Dynacor Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dynacor Group Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Dynacor Group Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Dynacor Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dynacor Group Inc's revenue has increased by approximately 25.70% per year on average, a rate that outperforms approximately 77.89% 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, Dynacor Group Inc's earnings increased by approximately 33.10% per year on average, a rate that outperforms approximately 78.3% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 25.40%, which outperforms approximately 72.74% of global competitors.
Next Steps
Considering Dynacor Group Inc's consistent dividend payments, robust dividend growth rate, sustainable payout ratio, high profitability, and strong growth metrics, the company presents itself as a potentially attractive option for value investors focused on dividend income. As the company prepares to distribute its upcoming dividend, these factors collectively suggest a positive outlook for Dynacor Group Inc's ability to maintain and potentially increase its dividend offerings in the future. Investors seeking to diversify their portfolios with high-dividend yield stocks should consider the insights provided by GuruFocus. For more in-depth analysis and stock screening tools, GuruFocus Premium users can utilize 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.
