Costamare Inc's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Costamare Inc
Costamare Inc(NYSE:CMRE) recently announced a dividend of $0.12 per share, payable on 2023-11-06, with the ex-dividend date set for 2023-10-19. 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 Incs dividend performance and assess its sustainability.
What Does Costamare Inc Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Costamare Inc is an international owner and operator of containerships and dry bulk vessels. The company charter its containerships to the liner companies, providing transportation of containerized cargoes. It charter 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 among 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 4.82% and a 12-month forward dividend yield of 4.82%. This suggests an expectation of 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 5.51%.
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, Costamare Inc's dividend payout ratio is 0.11.
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 2023-06-30, 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. 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 than approximately 88.65% 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 93.30% per year on average, a rate that outperforms than approximately 89.2% of global competitors.
Next Steps
With a consistent dividend payment history, a good dividend yield, and a strong growth trajectory, Costamare Inc presents an attractive investment for those seeking dividend income. However, investors should also consider the company's payout ratio and profitability to assess the sustainability of its dividends. Given its robust growth metrics, Costamare Inc appears well-positioned to maintain its dividend payments in the foreseeable future.
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.
