Apogee Enterprises Inc's Dividend Analysis
An In-depth Look at the Company's Dividend Performance and Sustainability
Apogee Enterprises Inc (NASDAQ:APOG) recently announced a dividend of $0.24 per share, payable on 2023-11-08, with the ex-dividend date set for 2023-10-23. 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 delve into Apogee Enterprises Inc's dividend performance and assess its sustainability.
Understanding Apogee Enterprises Inc
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Apogee Enterprises Inc is a renowned manufacturer of architectural glass and metal glass framings. The company also provides building glass installation services. It operates through four main business segments, namely Architectural Framing Systems; Architectural Glass; Architectural Services, and Large-Scale Optical Technologies (LSO). The Architectural Framing Systems segment, which generates the majority of the company's revenue, designs, engineers, fabricates, and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront, and entrance systems. Geographically, the United States is the company's primary revenue source.
A Glimpse at Apogee Enterprises Inc's Dividend History
Apogee Enterprises Inc has maintained a consistent dividend payment record since 1985, distributing dividends on a quarterly basis. The company has increased its dividend each year since 1985, earning it the status of a dividend aristocrat. This honor is given to companies that have increased their dividend each year for at least the past 38 years.
Breaking Down Apogee Enterprises Inc's Dividend Yield and Growth
As of today, Apogee Enterprises Inc currently boasts a 12-month trailing dividend yield of 2.23% and a 12-month forward dividend yield of 2.28%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Apogee Enterprises Inc's annual dividend growth rate was 8.10%. This rate increased to 8.90% per year over a five-year horizon. Over the past decade, Apogee Enterprises Inc's annual dividends per share growth rate stands at an impressive 10.30%. Based on Apogee Enterprises Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Apogee Enterprises Inc stock as of today is approximately 3.42%.
The Sustainability Question: Payout Ratio and Profitability
Assessing the sustainability of the dividend requires an evaluation of 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 2023-08-31, Apogee Enterprises Inc's dividend payout ratio is 0.21.
Apogee Enterprises Inc's profitability rank of 8 out of 10 as of 2023-08-31 suggests 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
Robust growth metrics are essential for the sustainability of dividends. Apogee Enterprises Inc's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Apogee Enterprises Inc's revenue has increased by approximately 7.40% per year on average, a rate that outperforms approximately 62.81% 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, Apogee Enterprises Inc's earnings increased by approximately 26.00% per year on average, a rate that outperforms approximately 72.43% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -16.10% outperforms approximately 13.68% of global competitors.
Conclusion
Based on Apogee Enterprises Inc's consistent dividend payments, impressive growth rate, low payout ratio, high profitability, and robust growth metrics, it is evident that the company's dividends are not only sustainable but also likely to increase in the future. This analysis should serve as a useful guide for investors seeking a stock with a strong dividend profile. Remember, a company's past performance is not a guarantee of future results, and it is essential to conduct thorough research before making investment decisions.
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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.
This article first appeared on GuruFocus.
