An In-Depth Look at Commercial Metals Co's Upcoming Dividend and Financial Health
Commercial Metals Co (CMC, Financial) recently announced a dividend of $0.16 per share, payable on 2024-02-01, with the ex-dividend date set for 2024-01-17. 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 Commercial Metals Co's dividend performance and assess its sustainability.
What Does Commercial Metals Co Do?
Commercial Metals Co operates steel mills, steel fabrication plants, and metal recycling facilities in the United States and manufactures rebar and structural steel, which are key product categories for the nonresidential construction sector. The Company has two reportable segments: North America and Europe.
A Glimpse at Commercial Metals Co's Dividend History
Commercial Metals Co has maintained a consistent dividend payment record since 1984, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 1987, earning it the prestigious title of a dividend aristocrat, a designation reserved for companies with at least 37 consecutive years of dividend increases.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Commercial Metals Co's Dividend Yield and Growth
As of today, Commercial Metals Co currently has a 12-month trailing dividend yield of 1.27% and a 12-month forward dividend yield of 1.27%, indicating an expectation of consistent dividend payments over the next 12 months.
Over the past three years, Commercial Metals Co's annual dividend growth rate was 10.10%, which decreased to 5.60% over a five-year period. Over the past decade, the annual dividends per share growth rate stands at 1.90%.
Based on Commercial Metals Co's dividend yield and five-year growth rate, the 5-year yield on cost of Commercial Metals Co stock as of today is approximately 1.67%.
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 2023-11-30, Commercial Metals Co's dividend payout ratio is 0.10.
Commercial Metals Co's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Commercial Metals Co's profitability 8 out of 10 as of 2023-11-30, 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. Commercial Metals Co's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Commercial Metals Co's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The company's revenue has increased by approximately 17.70% per year on average, outperforming approximately 72.28% 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, Commercial Metals Co's earnings increased by approximately 46.00% per year on average, outperforming approximately 66.21% of global competitors.
The company's 5-year EBITDA growth rate of 49.40%, outperforms approximately 88.93% of global competitors.
Next Steps
In conclusion, Commercial Metals Co's consistent dividend payments, robust dividend growth rate, low payout ratio, and strong profitability and growth metrics paint a promising picture for value investors. These factors suggest that Commercial Metals Co is not only committed to returning value to shareholders through dividends but is also positioned to sustain and potentially grow these payouts in the future. Investors looking to expand their portfolio with high-dividend yield stocks should consider the stability and growth potential that Commercial Metals Co offers.
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.
