Understanding Pepkor Holdings Ltd's Dividend Dynamics
Pepkor Holdings Ltd (PPKRF, Financial) recently announced a dividend of $0.48 per share, payable on 2024-01-22, 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 Pepkor Holdings Ltd's dividend performance and assess its sustainability.
What Does Pepkor Holdings Ltd Do?
Pepkor Holdings Ltd is an operator of a chain of retail stores based in Parow East, South Africa. The company functions offer segments that include clothing and general merchandise, furniture, appliances and electronics, building materials and fintech. It generates the vast majority of its revenue from the clothing and general merchandise segment, which consists of clothing, footwear and homeware products, fast-moving consumer specialty goods, cellular and financial services, thereby enabling its customers to get easy access to everyday products and services at affordable prices.
A Glimpse at Pepkor Holdings Ltd's Dividend History
Pepkor Holdings Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Pepkor Holdings Ltd's Dividend Yield and Growth
As of today, Pepkor Holdings Ltd currently has a 12-month trailing dividend yield of 3.15% and a 12-month forward dividend yield of 2.53%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Pepkor Holdings Ltd's annual dividend growth rate was 38.20%. Based on Pepkor Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Pepkor Holdings Ltd stock as of today is approximately 3.15%.
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, Pepkor Holdings Ltd's dividend payout ratio is 0.00.
Pepkor Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pepkor Holdings Ltd's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 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. Pepkor Holdings Ltd'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 Pepkor Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Pepkor Holdings Ltd's revenue has increased by approximately 5.70% per year on average, a rate that outperforms approximately 53.89% 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, Pepkor Holdings Ltd's earnings increased by approximately 32.10% per year on average, a rate that outperforms approximately 75.36% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 15.80%, which outperforms approximately 65.04% of global competitors.
Next Steps
In conclusion, Pepkor Holdings Ltd's recent dividend announcement highlights the company's commitment to providing shareholder value. The analysis of Pepkor Holdings Ltd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics presents a picture of a company with a solid financial foundation and promising growth prospects. These factors are crucial for investors seeking sustainable dividend income. Value investors may consider Pepkor Holdings Ltd as a potential candidate for their portfolios, especially if they are looking for exposure to the retail sector with a track record of consistent dividends. As with any investment, it's essential to perform due diligence and consider the broader economic and industry trends.
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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.
