Celanese Corp's Dividend Analysis
An Insightful Examination of the Dividend Performance and Sustainability of Celanese Corp (NYSE:CE)
Celanese Corp (NYSE:CE) recently announced a dividend of $0.7 per share, payable on 2023-11-13, with the ex-dividend date set for 2023-10-27. 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 Corp 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 also produces specialty polymers used in the automotive, electronics, medical, and consumer end markets as well as cellulose derivatives used in cigarette filters.
A Glimpse at Celanese Corp's Dividend History
Celanese Corp has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. The company has increased its dividend each year since 2005, earning it the status of a dividend achiever, an honor given to companies that have increased their dividend each year for at least the past 18 years.
Breaking Down Celanese Corp's Dividend Yield and Growth
As of today, Celanese Corp currently has a 12-month trailing dividend yield of 2.48% and a 12-month forward dividend yield of 2.48%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Celanese Corp's annual dividend growth rate was 4.50%. Extended to a five-year horizon, this rate increased to 9.30% per year. And over the past decade, Celanese Corp's annual dividends per share growth rate stands at an impressive 23.30%.
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 2023-06-30, Celanese Corp's dividend payout ratio is 0.24.
Celanese Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Celanese Corp's profitability 8 out of 10 as of 2023-06-30, 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. Celanese Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its 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, Celanese Corp's earnings increased by approximately 36.20% per year on average, a rate that outperforms than approximately 73.93% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 25.70%, outperforms than approximately 75.55% of global competitors.
Conclusion
Given Celanese Corp's consistent dividend payments, impressive growth rate, low payout ratio, high profitability, and strong growth metrics, the company's dividend appears sustainable in the foreseeable future. However, investors should continue to monitor these factors to ensure that the company's financial health remains robust. 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.
This article first appeared on GuruFocus.
