Dolby Laboratories Inc's Dividend Analysis
Insight into Dolby Laboratories Inc's Upcoming Dividend and Financial Health
Dolby Laboratories Inc (NYSE:DLB) recently announced a dividend of $0.3 per share, payable on 2024-02-22, with the ex-dividend date set for 2024-02-12. 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 Dolby Laboratories Inc's dividend performance and assess its sustainability.
What Does Dolby Laboratories Inc Do?
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Dolby Laboratories Inc develops audio and surround sound for cinema, broadcast, home audio systems, in-car entertainment systems, DVD players, games, televisions, and personal computers. The company generates three-fourths of its revenue from licensing its technology to consumer electronics manufacturers around the world. The rest of the revenue comes from equipment sales to professional producers and audio engineering services.
A Glimpse at Dolby Laboratories Inc's Dividend History
Dolby Laboratories Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Dolby Laboratories Inc's Dividend Yield and Growth
As of today, Dolby Laboratories Inc currently has a 12-month trailing dividend yield of 1.38% and a 12-month forward dividend yield of 1.49%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Dolby Laboratories Inc's annual dividend growth rate was 7.10%. Extended to a five-year horizon, this rate increased to 10.30% per year. Based on Dolby Laboratories Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Dolby Laboratories Inc stock as of today is approximately 2.25%.
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, Dolby Laboratories Inc's dividend payout ratio is 0.42.
Dolby Laboratories Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dolby Laboratories Inc's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Dolby Laboratories Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Dolby Laboratories Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dolby Laboratories Inc's revenue has increased by approximately 5.60% per year on average, a rate that outperforms approximately 51.49% 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, Dolby Laboratories Inc's earnings increased by approximately 2.50% per year on average, a rate that outperforms approximately 34.2% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 26.90%, which outperforms approximately 83.48% of global competitors.
Next Steps
Considering Dolby Laboratories Inc's consistent dividend payments, a solid dividend growth rate, a moderate payout ratio, robust profitability, and promising growth metrics, investors might view DLB as a potential candidate for their dividend portfolios. The company's financial health and growth prospects appear to position it well for ongoing dividend distributions. However, investors should always perform their due diligence, keeping an eye on market dynamics and the company's future earnings reports, to ensure their investment aligns with their financial goals. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can screen for 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.
