Century Communities Inc's Dividend Analysis
Investigating the Sustainability of Century Communities Inc's Dividend
Century Communities Inc (NYSE:CCS) recently announced a dividend of $0.26 per share, payable on 2024-03-13, with the ex-dividend date set for 2024-02-27. 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 Century Communities Inc's dividend performance and assess its sustainability.
What Does Century Communities Inc Do?
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Century Communities Inc is a construction company that focuses on the residential market. It has five homebuilding segments: West, Mountain, Texas, Southeast, and Century Complete. Its sixth reportable segment is financial services operations, which provides mortgage, title, and insurance services to homebuyers. It has acquired land for homebuilding operations with the primary intent to develop and construct single-family detached or attached homes for sale on the acquired land. The company sells homes through its own sales representatives and independent real estate brokers. It also advertises directly to potential homebuyers through the Internet, newspapers, and trade publications. The company generates the majority of its revenue from the Mountain segment.
A Glimpse at Century Communities Inc's Dividend History
Century Communities Inc has maintained a consistent dividend payment record since 2021, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Century Communities Inc's Dividend Yield and Growth
As of today, Century Communities Inc currently has a 12-month trailing dividend yield of 1.06% and a 12-month forward dividend yield of 1.19%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Century Communities Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Century Communities Inc stock as of today is approximately 1.06%.
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 2023-12-31, Century Communities Inc's dividend payout ratio is 0.11. Century Communities Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Century Communities Inc's profitability 8 out of 10 as of 2023-12-31, suggesting 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
To ensure the sustainability of dividends, a company must have robust growth metrics. Century Communities Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Century Communities Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Century Communities Inc's revenue has increased by approximately 6.80% per year on average, a rate that underperforms approximately 54% 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, Century Communities Inc's earnings increased by approximately 9.20% per year on average, a rate that underperforms approximately 55.81% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 27.90%, which underperforms approximately 25.37% of global competitors.
Concluding Thoughts on Century Communities Inc's Dividend Profile
Considering Century Communities Inc's consistent dividend payments, modest dividend growth rate, low payout ratio, strong profitability, and growth metrics, the company presents a promising case for value investors seeking stable dividend income. While some growth rates may lag behind global competitors, the overall picture suggests a company with the potential for sustained dividend payments. Investors should watch for any shifts in market conditions or company performance that could affect these dividends. For those looking for additional high-dividend yield opportunities, 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.
