Assessing the Sustainability and Growth of The Carlyle Group Inc's Dividend
The Carlyle Group Inc(CG, Financial) recently announced a dividend of $0.35 per share, payable on 2024-03-01, with the ex-dividend date set for 2024-02-22. 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 The Carlyle Group Inc's dividend performance and assess its sustainability.
What Does The Carlyle Group Inc Do?
The Carlyle Group is one of the world's largest alternative-asset managers, with $382.3 billion in total assets under management, including $273.0 billion in fee-earning AUM, at the end of September 2023. The company has three core business segments: private equity, global credit, and investment solutions. The Carlyle Group Inc caters to institutional investors and high-net-worth individuals and operates through 29 offices across five continents, serving more than 2,900 active carry fund investors from 88 countries.
A Glimpse at The Carlyle Group Inc's Dividend History
The Carlyle Group Inc has maintained a consistent dividend payment record since 2012, distributing dividends quarterly. Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down The Carlyle Group Inc's Dividend Yield and Growth
The Carlyle Group Inc currently has a 12-month trailing dividend yield of 3.11% and a 12-month forward dividend yield of 3.16%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was -3.40%, extending to -2.90% over five years, and a 2.20% growth rate over the past decade. The 5-year yield on cost for The Carlyle Group Inc stock is approximately 2.68%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The Carlyle Group Inc's dividend payout ratio is 2.33 as of 2023-09-30, suggesting that the dividend may not be sustainable. The company's profitability rank of 4 out of 10 also raises concerns about the sustainability of its dividend, although the company has reported net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
The Carlyle Group Inc's growth rank of 4 out of 10 indicates poor growth prospects, which may impact dividend sustainability. The company's revenue per share and 3-year revenue growth rate show a performance that underperforms approximately 81.11% of global competitors. Additionally, its 3-year EPS growth rate and 5-year EBITDA growth rate underperform approximately 53.13% and 21.47% of global competitors, respectively.
Next Steps
Considering The Carlyle Group Inc's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors should weigh these factors when evaluating the company's dividend sustainability. While the past dividend record is consistent, the current metrics suggest caution. Investors seeking high-dividend yield stocks can explore further using 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.
