Celanese Corp's Dividend Analysis
Understanding the Dividend Dynamics of Celanese Corp
Celanese Corp (NYSE:CE) recently announced a dividend of $0.70 per share, payable on March 5, 2024, with the ex-dividend date set for February 16, 2024. 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 Celanese Corp's dividend performance and assess its sustainability.
What Does Celanese Corp Do?
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Celanese is one of the world's largest producers of acetic acid and its downstream derivative chemicals, which are used in various end markets, including coatings and adhesives. The company is also one of the largest producers of specialty polymers, which are used in the automotive, electronics, medical, building, and consumer end markets. Additionally, Celanese makes cellulose derivatives used in cigarette filters, diversifying its product offerings.
A Glimpse at Celanese Corp's Dividend History
Celanese Corp has maintained a consistent dividend payment record since 2005, distributing dividends on a quarterly basis. As a dividend achiever, Celanese Corp has increased its dividend each year for at least the past 19 years, showcasing its commitment to returning value to shareholders. Below is a chart illustrating the historical trends of Celanese Corp's annual Dividends Per Share.
Breaking Down Celanese Corp's Dividend Yield and Growth
Celanese Corp currently boasts a 12-month trailing dividend yield of 1.86% and a forward dividend yield of 1.86%, indicating expectations of consistent dividend payments over the next year. Over the past three years, Celanese Corp's annual dividend growth rate was 4.50%, which expanded to 9.30% per year over a five-year horizon. Remarkably, the annual dividends per share growth rate over the past decade stands at an impressive 23.30%. Based on these figures, the 5-year yield on cost for Celanese Corp stock is approximately 2.90%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. As of September 30, 2023, Celanese Corp's dividend payout ratio is 0.23, indicating a healthy balance between distributing earnings and retaining capital for growth. Furthermore, with a profitability rank of 8 out of 10, Celanese Corp demonstrates strong earnings potential relative to its peers. The company's consistent positive net income over the past decade reinforces its financial stability and high profitability.
Growth Metrics: The Future Outlook
A robust growth profile is imperative for the sustainability of dividends. Celanese Corp's growth rank of 8 out of 10 signals a favorable growth trajectory compared to competitors. The company's revenue per share and 3-year revenue growth rate, averaging 20.60% per year, outperform approximately 76.53% of global competitors. Additionally, Celanese Corp's 3-year EPS growth rate of 30.10% per year and 5-year EBITDA growth rate of 21.50% surpass the performance of approximately 70.93% and 70.34% of global competitors, respectively. These metrics indicate a robust revenue and earnings model, essential for sustaining dividend payments.
Next Steps for Investors
In conclusion, Celanese Corp's consistent dividend payments, impressive dividend growth rate, prudent payout ratio, and strong profitability and growth metrics paint a promising picture for investors focused on dividend income. As the company continues to navigate the market, value investors may find Celanese Corp an attractive option for their portfolios. For those seeking high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to aid in the search for potential investments.
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.
