Embecta Corp's Dividend Analysis
Insight into Embecta Corp's Upcoming Dividend Payment and Performance
Embecta Corp(NASDAQ:EMBC) recently announced a dividend of $0.15 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-12-01. 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 Embecta Corps dividend performance and assess its sustainability.
Understanding Embecta Corp's Business
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Embecta Corp is a medical technology company. The company develops innovative technology, services, and solutions that help advance both clinical therapy for patients and clinical processes for healthcare providers. Its products include BD Pyxis, PureWick, Phasix among others.
Embecta Corp's Dividend History
Embecta Corp has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis.
Embecta Corp has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2023 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Analyzing Embecta Corp's Dividend Yield and Growth
As of today, Embecta Corp currently has a 12-month trailing dividend yield of 3.20% and a 12-month forward dividend yield of 3.20%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Embecta Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Embecta Corp stock as of today is approximately 3.20%.
Evaluating Dividend Sustainability: 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 2023-09-30, Embecta Corp's dividend payout ratio is 0.49.
Embecta Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Embecta Corp's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics and Future Outlook for Embecta Corp
To ensure the sustainability of dividends, a company must have robust growth metrics. Embecta Corp's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Embecta Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Embecta Corp's revenue has increased by approximately 0.70% per year on average, a rate that underperforms than approximately 69.83% 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, Embecta Corp's earnings increased by approximately -26.40% per year on average, a rate that underperforms than approximately 87.7% of global competitors.
Final Thoughts on Embecta Corp's Dividend Prospects
Embecta Corp's upcoming dividend, consistent payment history, and a dividend yield of 3.20% may appeal to investors seeking regular income. However, the dividend's sustainability hinges on the company's future growth prospects and financial health. While the payout ratio appears manageable, the mixed signals from the company's profitability and growth metrics suggest a need for cautious optimism. Investors should consider Embecta Corp's overall financial position, including its ability to maintain or increase dividends amidst its current growth trajectory and industry challenges.
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.
