eBay Inc's Dividend Analysis
Understanding eBay Inc's Upcoming Dividend Payout
eBay Inc (NASDAQ:EBAY) recently announced a dividend of $0.27 per share, payable on 2024-03-25, with the ex-dividend date set for 2024-03-08. 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 delve into eBay Inc's dividend performance and assess its sustainability.
What Does eBay Inc Do?
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eBay operates one of the largest e-commerce marketplaces in the world, with $73 billion in 2023 gross merchandise volume, or GMV, making the company a top 10 global e-commerce entity. The company earns revenue through listing fees, advertising, revenue-sharing arrangements with service providers, and managed payments. eBay's platform boasts over 130 million buyers and roughly 20 million sellers from almost 190 markets worldwide as of the end of 2023. Over half of eBay's GMV comes from international markets, particularly the U.K., Germany, and Australia.
A Glimpse at eBay Inc's Dividend History
eBay Inc has upheld a steady dividend payment history since 2019, with dividends being distributed on a quarterly basis. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down eBay Inc's Dividend Yield and Growth
eBay Inc currently has a 12-month trailing dividend yield of 1.98% and a 12-month forward dividend yield of 2.13%, indicating an anticipated increase in dividend payments over the next year. Over the past three years, eBay Inc's annual dividend growth rate was an impressive 16.00%. The 5-year yield on cost for eBay Inc stock is approximately 1.98% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of eBay Inc's dividends can be evaluated by examining the dividend payout ratio, which stood at 0.26 as of 2023-12-31. This low ratio implies that eBay retains a substantial portion of its earnings, which supports future growth and cushions against downturns. eBay Inc's profitability rank is 8 out of 10, indicating strong earnings potential compared to peers. The company has also reported net profits in 8 of the past 10 years.
Growth Metrics: The Future Outlook
eBay Inc's growth rank of 8 suggests a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate indicate a robust revenue model, with an average annual increase of 15.30%, outperforming 75.22% of global competitors. eBay Inc's 3-year EPS growth rate of 20.10% and 5-year EBITDA growth rate of 22.80% further underscore its ability to sustain dividends.
Next Steps
In conclusion, eBay Inc's upcoming dividend, consistent dividend history, and robust growth metrics paint a promising picture for investors seeking a reliable income stream. The company's low payout ratio and high profitability rank suggest that dividends are well-covered by earnings, providing a cushion for future growth. Considering eBay Inc's strong performance and growth potential, value investors may find this an opportune time to evaluate the stock's potential as part of their investment portfolio. For further exploration, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover other high-dividend yield investment opportunities.
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.
