Costamare Inc's Dividend Analysis
Understanding the Sustainability and Growth of Costamare Inc's Dividends
Costamare Inc (NYSE:CMRE) recently announced a dividend of $0.12 per share, payable on 2024-02-07, with the ex-dividend date set for 2024-01-19. 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 Costamare Inc's dividend performance and assess its sustainability.
What Does Costamare Inc Do?
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Costamare Inc is an international owner and operator of containerships and dry bulk vessels. The company charters its containerships to liner companies, providing transportation of containerized cargoes. It charters its dry bulk vessels to a wide variety of customers, providing transportation for dry bulk cargoes. The company's fleet of vessels includes Cosco Guangzhou, Cosco Ningbo, Cosco Yantian, Vantage, Valor, Valiant, Maersk Kobe, and others. Costamare provides services to ocean carriers that demand a high standard of safety and reliability. It generates a majority of its revenue from the United States of America.
A Glimpse at Costamare Inc's Dividend History
Costamare Inc has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Costamare Inc's Dividend Yield and Growth
As of today, Costamare Inc currently has a 12-month trailing dividend yield of 4.11% and a 12-month forward dividend yield of 4.11%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Costamare Inc's annual dividend growth rate was 4.80%. Extended to a five-year horizon, this rate decreased to 2.70% per year. And over the past decade, Costamare Inc's annual dividends per share growth rate stands at -12.00%.
Based on Costamare Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Costamare Inc stock as of today is approximately 4.70%.
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, Costamare Inc's dividend payout ratio is 0.13.
Costamare Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Costamare Inc's profitability 9 out of 10 as of 2023-09-30, 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. Costamare Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Costamare Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Costamare Inc's revenue has increased by approximately 29.90% per year on average, a rate that outperforms approximately 88.48% 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, Costamare Inc's earnings increased by approximately 66.50% per year on average, a rate that outperforms approximately 82.28% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 46.40%, which outperforms approximately 89.72% of global competitors.
Concluding Insights on Costamare Inc's Dividends
Investors in Costamare Inc can take comfort in the company's reliable dividend history and the recent announcement of its upcoming dividend payment. With a modest payout ratio and strong profitability, the dividends appear sustainable. Furthermore, impressive growth metrics provide a positive outlook for the company's ability to maintain and potentially increase dividend payments in the future. For value investors seeking income-generating stocks, Costamare Inc's dividend yield, combined with its growth prospects, may represent an appealing opportunity. Value investors can further explore such opportunities with tools like the High Dividend Yield Screener available to GuruFocus Premium users.
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.
