Atlas Arteria Ltd (MAQAF): A Deep Dive into Dividend Performance and Sustainability
Unpacking the Dividend History, Yield, and Growth of Atlas Arteria Ltd (MAQAF)
Atlas Arteria Ltd (MAQAF) recently announced a dividend of $0.2 per share, payable on 2023-10-05, with the ex-dividend date set for 2023-09-25. 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 deep dive into Atlas Arteria Ltd's dividend performance and assess its sustainability.
A Brief Overview of Atlas Arteria Ltd
Warning! GuruFocus has detected 7 Warning Signs with MAQAF. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Atlas Arteria is a global toll-road investor created out of the reorganisation of Macquarie Infrastructure Group in 2010. The firm's main asset is a 31.1% stake in Autoroutes Paris-Rhin-Rhone, or APRR. APRR owns concessions to toll more than 2,300 kilometres of motorways in eastern France, most ending late 2035. The firm also wholly owns the Dulles Greenway and 66.7% of the Chicago Skyway, both in the U.S.
Atlas Arteria Ltd's Dividend History: A Retrospective
Atlas Arteria Ltd has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Atlas Arteria Ltd's Dividend Yield and Growth: A Closer Look
As of today, Atlas Arteria Ltd currently has a 12-month trailing dividend yield of 6.99% and a 12-month forward dividend yield of 6.87%. This suggests an expectation of decreased dividend payments over the next 12 months.
Atlas Arteria Ltd's dividend yield of 6.99% is near a 10-year high and outperforms than 86.59 of global competitors in the Construction industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Atlas Arteria Ltd's annual dividend growth rate was 12.40%. Extended to a five-year horizon, this rate increased to 16.30% per year.
Based on Atlas Arteria Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Atlas Arteria Ltd stock as of today is approximately 14.87%.
Assessing Dividend Sustainability: 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 2023-06-30, Atlas Arteria Ltd's dividend payout ratio is 1.76, which may suggest that the company's dividend may not be sustainable.
Atlas Arteria Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Atlas Arteria Ltd's profitability 4 out of 10 as of 2023-06-30, suggesting that the dividend may not be sustainable. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Atlas Arteria Ltd's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Atlas Arteria Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Atlas Arteria Ltd's revenue has increased by approximately -21.50% per year on average, a rate that underperforms than approximately 90.35% of global competitors.
Concluding Remarks
While Atlas Arteria Ltd's impressive dividend yield and consistent dividend payments may seem attractive, investors should also consider the company's payout ratio, profitability, and growth metrics. The company's high payout ratio and lower profitability rank suggest that its dividends may not be sustainable in the long term. Furthermore, the company's poor growth prospects could also impact future dividend payments. Therefore, investors should exercise caution and conduct further research before making any investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
