Insights into Rush Enterprises Inc's Upcoming Dividend and Financial Health
Rush Enterprises Inc (RUSHA, Financial) recently announced a dividend of $0.17 per share, payable on 2024-03-18, with the ex-dividend date set for 2024-02-26. 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 Rush Enterprises Inc's dividend performance and assess its sustainability.
What Does Rush Enterprises Inc Do?
Rush Enterprises Inc is a full-service, integrated retailer of commercial vehicles and related services. The company operates in a single segment; Truck Segment includes the operation of a network of commercial vehicle dealerships under the name Rush Truck Centers. It sells commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, and Blue Bird and also provides one-stop service for the needs of commercial vehicle customers, including retail sales of new and used commercial vehicles, aftermarket parts sales, service and repair facilities, financing, leasing and rental, and insurance products. The company's business is concentrated in the United States commercial vehicle markets and related aftermarkets.
A Glimpse at Rush Enterprises Inc's Dividend History
Rush Enterprises Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Rush Enterprises Inc's Dividend Yield and Growth
As of today, Rush Enterprises Inc currently has a 12-month trailing dividend yield of 1.33% and a 12-month forward dividend yield of 1.46%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Rush Enterprises Inc's annual dividend growth rate was 33.90%. Based on Rush Enterprises Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Rush Enterprises Inc stock as of today is approximately 1.33%.
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 2023-12-31, Rush Enterprises Inc's dividend payout ratio is 0.15.
Rush Enterprises Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Rush Enterprises Inc's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Rush Enterprises 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 Rush Enterprises Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Rush Enterprises Inc's revenue has increased by approximately 6.40% per year on average, a rate that underperforms than approximately 50.91% 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, Rush Enterprises Inc's earnings increased by approximately 39.50% per year on average, a rate that underperforms than approximately 20.3% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 18.70%, which underperforms than approximately 19.91% of global competitors.
Next Steps
In conclusion, Rush Enterprises Inc's consistent dividend payments and notable dividend growth rate present an appealing case for income-focused investors. The company's prudent payout ratio and strong profitability rank highlight its financial health and ability to sustain dividends. However, while some growth metrics indicate robustness, others suggest there is room for improvement compared to industry counterparts. Investors should weigh these factors, alongside industry trends and Rush Enterprises Inc's strategic initiatives, when considering the stock's dividend prospects. Will Rush Enterprises Inc continue to provide a stable and growing dividend income stream for its shareholders? This is a question value investors may ponder as they analyze the company's fundamentals and future potential.
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.
