Crown Holdings Inc's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Crown Holdings Inc
Crown Holdings Inc (NYSE:CCK) recently announced a dividend of $0.24 per share, payable on 2023-11-22, with the ex-dividend date set for 2023-11-07. As investors anticipate this upcoming payment, it's important to evaluate the company's dividend history, yield, and growth rates. Using the data from GuruFocus, we delve into Crown Holdings Inc's dividend performance and assess its sustainability.
Understanding Crown Holdings Inc's Business
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Crown Holdings is one of the world's leading producers of metal packaging. The company manufactures beverage cans, metal food cans, closures, and aerosol cans. Following the acquisition of Signode, Crown Holdings also has a stake in a broad range of protective transport packaging. Despite being headquartered in the United States, the majority of the company's sales originate from its operations in Europe, South America, and Southeast Asia.
Reviewing Crown Holdings Inc's Dividend History
Since 2021, Crown Holdings Inc has sustained a consistent dividend payment record, distributing dividends on a quarterly basis. The chart below shows the annual Dividends Per Share, providing a historical perspective on the company's dividend trends.
Understanding Crown Holdings Inc's Dividend Yield and Growth
As of today, Crown Holdings Inc boasts a 12-month trailing dividend yield of 1.13% and a 12-month forward dividend yield of 1.15%. This suggests an anticipated increase in dividend payments over the next 12 months. Moreover, based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Crown Holdings Inc stock is approximately 1.13% as of today.
Evaluating the Sustainability of Crown Holdings Inc's Dividend
The sustainability of a dividend is often determined by the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company allocates as dividends. A lower ratio suggests that the company retains a significant portion of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Crown Holdings Inc's dividend payout ratio is 0.22.
Crown Holdings Inc's profitability rank, as determined by GuruFocus, is 8 out of 10 as of 2023-09-30. This suggests good profitability prospects, with the company reporting net profit in 9 out of the past 10 years.
Assessing Crown Holdings Inc's Growth Metrics
For dividends to be sustainable, a company must demonstrate robust growth metrics. Crown Holdings Inc's growth rank of 8 out of 10 indicates a strong growth trajectory relative to its competitors. Furthermore, Crown Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The company's revenue has grown by approximately 14.60% per year on average, a rate that outperforms approximately 78.08% of global competitors.
Also, the company's 3-year EPS growth rate showcases its ability to grow its earnings, a crucial element for sustaining dividends in the long run. Over the past three years, Crown Holdings Inc's earnings have increased by approximately 26.30% per year on average, a rate that outperforms approximately 74.04% of global competitors.
Conclusion
Considering Crown Holdings Inc's consistent dividend payments, promising growth rate, reasonable payout ratio, strong profitability, and impressive growth metrics, the company appears to be a promising prospect for investors seeking sustainable dividends. However, as with any investment, it's important to conduct thorough research and consider all relevant factors before making a decision.
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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.
