Carrier Global Corp's Dividend Analysis
An Insightful Examination of Carrier Global Corp's Dividend Performance and Sustainability
Carrier Global Corp (NYSE:CARR) recently announced a dividend of $0.19 per share, payable on November 20, 2023, with the ex-dividend date set for October 26, 2023. As investors anticipate this forthcoming payment, it is crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, this article delves into Carrier Global Corp's dividend performance and assesses its sustainability.
Understanding Carrier Global Corp's Operations
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Carrier Global Corp is a leading manufacturer of heating, ventilation, air conditioning, refrigeration, and fire and security products. The firm caters to both residential and commercial markets, with its HVAC segment sales mix consisting of 60% commercial and 40% residential. The refrigeration segment encompasses its transportation refrigeration, Sensitech supply chain monitoring, and commercial refrigeration businesses. In April 2023, Carrier announced plans to divest its fire and security and commercial refrigeration businesses and acquire Germany-based Viessmann for approximately $13 billion.
Carrier Global Corp's Dividend History
Carrier Global Corp has maintained a consistent dividend payment record since 2020, with dividends distributed quarterly. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Carrier Global Corp's Dividend Yield and Growth
As of today, Carrier Global Corp has a 12-month trailing dividend yield of 1.47% and a 12-month forward dividend yield of 1.57%. This indicates an expectation of increased dividend payments over the next 12 months. Furthermore, based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Carrier Global Corp stock is approximately 1.47% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio is a critical factor in assessing dividend sustainability. As of June 30, 2023, Carrier Global Corp's dividend payout ratio is 0.28, suggesting that the company retains a significant portion of its earnings, thereby ensuring funds for future growth and unexpected downturns. Carrier Global Corp's profitability rank of 6 out of 10 suggests fair profitability, having reported net profit in 6 out of the past 10 years.
Future Outlook: Growth Metrics
Carrier Global Corp's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and the 3-year revenue growth rate indicate a strong revenue model, with revenue increasing by approximately 3.30% per year on average. However, this growth rate underperforms approximately 50.39% of global competitors. Over the past three years, Carrier Global Corp's earnings increased by approximately 26.40% per year on average, underperforming approximately 27.42% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 11.80% underperforms approximately 33.79% of global competitors.
Conclusion
In conclusion, Carrier Global Corp's consistent dividend payments, reasonable payout ratio, and fair profitability suggest a sustainable dividend policy. However, its growth metrics, particularly in comparison to global competitors, warrant monitoring to ensure the long-term sustainability of dividends. As always, investors are advised to conduct their own comprehensive 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.
