Corning Inc's Dividend Analysis
Assessing the Upcoming Dividend Payout and Financial Health of Corning Inc
Corning Inc (NYSE:GLW) recently announced a dividend of $0.28 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-02-28. 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?
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Corning Inc 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. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 17 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 3.44% and a 12-month forward dividend yield of 3.44%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Corning Inc's annual dividend growth rate was 8.40%. Extended to a five-year horizon, this rate increased to 9.60% per year. And over the past decade, Corning Inc's annual dividends per share growth rate stands at an impressive 12.10%.
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 5.44%.
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, Corning Inc's dividend payout ratio is 0.66.
Corning Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Corning Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of 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 7 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, Corning Inc's earnings increased by approximately 6.90% per year on average, a rate that outperforms approximately 40.25% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.00%, which outperforms approximately 30.94% of global competitors.
Engaging Conclusion
With a solid track record of dividend payments and growth, coupled with a reasonable payout ratio and good profitability, Corning Inc presents itself as an attractive option for dividend-seeking investors. The company's ability to grow earnings and maintain a competitive edge in its industry bodes well for the sustainability of its dividends. As investors consider adding GLW to their portfolios, they should also weigh the growth prospects and the potential impact of broader market trends on Corning Inc's financial health.
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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.
