Fisher & Paykel Healthcare Corp Ltd's Dividend Analysis
Understanding the Dividend Dynamics of Fisher & Paykel Healthcare Corp Ltd (FSPKF)
Fisher & Paykel Healthcare Corp Ltd (FSPKF) recently announced a dividend of $0.18 per share, payable on 2023-12-18, with the ex-dividend date set for 2023-12-05. 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 Fisher & Paykel Healthcare Corp Ltd's dividend performance and assess its sustainability.
What Does Fisher & Paykel Healthcare Corp Ltd Do?
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Fisher & Paykel Healthcare is one of the three largest respiratory care device companies globally. It is the market leader in hospital use humidifiers, masks and related consumables and the number three player in the at-home treatment of sleep apnoea using respiratory devices. Both the hospital and homecare markets for respiratory devices are growing strongly in the developed markets in which Fisher & Paykel has a presence. The company earns 42% of its revenue in the U.S., 32% in Europe, 18% in Asia-Pacific and the remaining 8% in emerging markets. Fisher conducts its own R&D and has thousands of patents and pending applications. It manufactures in New Zealand and Mexico and has a multichannel distribution model.
A Glimpse at Fisher & Paykel Healthcare Corp Ltd's Dividend History
Fisher & Paykel Healthcare Corp Ltd has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Fisher & Paykel Healthcare Corp Ltd's Dividend Yield and Growth
As of today, Fisher & Paykel Healthcare Corp Ltd currently has a 12-month trailing dividend yield of 1.75% and a 12-month forward dividend yield of 1.74%. This suggests an expectation of stable dividend payments over the next 12 months.
Over the past three years, Fisher & Paykel Healthcare Corp Ltd's annual dividend growth rate was 19.90%. Extended to a five-year horizon, this rate decreased to 18.10% per year. And over the past decade, Fisher & Paykel Healthcare Corp Ltd's annual dividends per share growth rate stands at an impressive 13.70%.
Based on Fisher & Paykel Healthcare Corp Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Fisher & Paykel Healthcare Corp Ltd stock as of today is approximately 4.02%.
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 2023-09-30, Fisher & Paykel Healthcare Corp Ltd's dividend payout ratio is 0.90, which may suggest that the company's dividend is sustainable given its high profitability.
Fisher & Paykel Healthcare Corp Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Fisher & Paykel Healthcare Corp Ltd's profitability 9 out of 10 as of 2023-09-30, 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. Fisher & Paykel Healthcare Corp Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Fisher & Paykel Healthcare Corp Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Fisher & Paykel Healthcare Corp Ltd's revenue has increased by approximately 7.50% per year on average, a rate that outperforms approximately 50.69% 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, Fisher & Paykel Healthcare Corp Ltd's earnings decreased by approximately -4.60% per year on average, a rate that outperforms approximately 32.76% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 11.10%, which outperforms approximately 48.58% of global competitors.
Conclusion: Evaluating Fisher & Paykel Healthcare Corp Ltd's Dividend Prospects
When it comes to dividend investing, Fisher & Paykel Healthcare Corp Ltd presents a compelling case. The company's consistent dividend history, impressive growth rates, and sustainable payout ratio, coupled with its strong profitability and growth metrics, paint a picture of a robust investment opportunity for those seeking income through dividends. While past performance is not indicative of future results, Fisher & Paykel Healthcare Corp Ltd's track record suggests a commitment to returning value to shareholders. As the company continues to innovate and expand within the growing healthcare device market, investors may find Fisher & Paykel Healthcare Corp Ltd to be a breath of fresh air in their portfolios.
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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.
