Corning Inc's Dividend Analysis
An Investor's Guide to Corning Inc's Upcoming Dividend and Financial Health
Corning Inc (NYSE:GLW) recently announced a dividend of $0.28 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-16. 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 Corning Inc's dividend performance and assess its sustainability.
What Does Corning Inc Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Corning is a leader in materials science, specializing in the production of glass, ceramics, and optical fiber. The firm supplies its products for a wide range of applications, from flat-panel displays in televisions to gasoline particulate filters in automobiles to optical fiber for broadband access, with a leading share in many of its end markets.
A Glimpse at Corning Inc's Dividend History
Corning Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis. Corning Inc has increased its dividend each year since 2007, earning the title of a dividend achiever, an accolade reserved for companies that have consistently raised their dividends for at least the past 16 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Corning Inc's Dividend Yield and Growth
As of today, Corning Inc currently has a 12-month trailing dividend yield of 3.84% and a 12-month forward dividend yield of 3.88%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Corning Inc's annual dividend growth rate was 10.50%. Extended to a five-year horizon, this rate increased to 11.30% per year. And over the past decade, Corning Inc's annual dividends per share growth rate stands at an impressive 13.00%.
Based on Corning Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Corning Inc stock as of today is approximately 6.56%.
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 2023-09-30, Corning Inc's dividend payout ratio is 1.63, which may suggest that the company's dividend may not be sustainable.
Corning Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Corning Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Corning 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 Corning Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Corning Inc's revenue has increased by approximately 9.00% per year on average, a rate that outperforms approximately 63.41% 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, Corning Inc's earnings increased by approximately 5.90% per year on average, a rate that outperforms approximately 39.36% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 4.50%, which outperforms approximately 36.17% of global competitors.
Next Steps
For investors, Corning Inc's consistent dividend growth, coupled with its solid profitability and favorable growth metrics, presents an attractive profile in the materials science sector. While the payout ratio may raise some concerns about dividend sustainability, the company's overall financial health suggests it has the capacity to maintain, if not grow, its dividends. Investors seeking to diversify their income-generating portfolio may find Corning Inc an interesting prospect, especially considering its history as a dividend achiever. As with any investment decision, it's essential to perform due diligence and consider the broader economic context. For those looking to explore further, 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.
