Exploring the Dividend Performance and Sustainability of CP All PCL (CVPUF, Financial)
CP All PCL (CVPUF) recently announced a dividend of $1 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-07. 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 CP All PCL's dividend performance and assess its sustainability.
What Does CP All PCL Do?
CP All PCL is the sole operator of 7-Eleven convenience stores in Thailand. Almost half of the stores are located in Bangkok and its vicinities, with the remaining located in provincial areas. The company also operates other related businesses, such as bill payment collection services, manufacturing and sale of convenience food and bakery products, sale and maintenance of retail equipment, payment for products and services, information technology services, logistics services, marketing services, educational institution, and training and business seminar services, including catalog sales and e-commerce businesses. The company has four reportable segments: convenience stores, wholesale, retail and mall, and others. The majority of its revenue from Convenience stores segment.
A Glimpse at CP All PCL's Dividend History
CP All PCL has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down CP All PCL's Dividend Yield and Growth
As of today, CP All PCL currently has a 12-month trailing dividend yield of 1.48% and a 12-month forward dividend yield of 1.89%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, CP All PCL's annual dividend growth rate was -15.70%. Extended to a five-year horizon, this rate increased to -11.60% per year. And over the past decade, CP All PCL's annual dividends per share growth rate stands at -1.20%.
Based on CP All PCL's dividend yield and five-year growth rate, the 5-year yield on cost of CP All PCL stock as of today is approximately 0.80%.
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, CP All PCL's dividend payout ratio is 0.38.
CP All PCL's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CP All PCL's profitability 9 out of 10 as of 2023-12-31, 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. CP All PCL's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and CP All PCL's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CP All PCL's revenue has increased by approximately 19.40% per year on average, a rate that outperforms approximately 84.8% 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, CP All PCL's earnings increased by approximately 6.10% per year on average, a rate that outperforms approximately 43.88% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -6.90%, which outperforms approximately 10.06% of global competitors.
Conclusion
Considering CP All PCL's robust dividend payments, growth metrics, and a strong payout ratio, the company presents a compelling case for investors seeking stable dividend income. The consistent profitability and strategic expansions ensure that CP All PCL remains a noteworthy contender in the convenience store sector. As the company approaches its next dividend date, investors are encouraged to consider these factors in their investment decisions. For those looking to explore further, 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.
