An In-depth Analysis of Village Super Market Inc's Dividend Prospects
Exploring the Sustainability, Yield, and Growth of Village Super Market Inc's Dividends
Village Super Market Inc (NASDAQ:VLGEA) recently announced a dividend of $0.25 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-04. 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 deep dive into Village Super Market Inc's dividend performance and assess its sustainability.
About Village Super Market Inc
Warning! GuruFocus has detected 3 Warning Signs with VLGEA. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Village Super Market Inc operates a chain of ShopRite supermarkets, a few of which are in northern New Jersey, southern New Jersey, Maryland, and in northeastern Pennsylvania. The company is a member of Wakefern Food Corporation (Wakefern), the nation's largest retailer-owned food cooperative and owner of the ShopRite name. It consists of one operating segment, the retail sale of food and nonfood products.
A Glimpse at Village Super Market Inc's Dividend History
Village Super Market Inc has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Village Super Market Inc has increased its dividend each year since 2011. 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 12 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Village Super Market Inc's Dividend Yield and Growth
As of today, Village Super Market Inc currently has a 12-month trailing dividend yield of 4.37% and a 12-month forward dividend yield of 4.37%. This suggests an expectation of same dividend payments over the next 12 months. And over the past decade, Village Super Market Inc's annual dividends per share growth rate stands at 0.70%. Based on Village Super Market Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Village Super Market Inc stock as of today is approximately 4.37%.
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 2023-04-30, Village Super Market Inc's dividend payout ratio is 0.31.
Village Super Market Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Village Super Market Inc's profitability 7 out of 10 as of 2023-04-30, 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. Village Super Market Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Village Super Market Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Village Super Market Inc's revenue has increased by approximately 7.50% per year on average, a rate that outperforms than approximately 60.07% 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, Village Super Market Inc's earnings increased by approximately 1.30% per year on average, a rate that outperforms than approximately 26.58% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -0.10%, which outperforms than approximately 24.1% of global competitors.
Conclusion
Considering Village Super Market Inc's consistent dividend payments, impressive dividend growth rate, sustainable payout ratio, high profitability, and robust growth metrics, the company presents a promising investment opportunity for dividend investors. However, as with any investment, it's crucial to conduct thorough research and consider all relevant factors before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
