Guardian Capital Group Ltd's Dividend Analysis
Assessing the Dividend Profile of Guardian Capital Group Ltd (GCAAF)
Guardian Capital Group Ltd (GCAAF) recently announced a dividend of $0.34 per share, payable on 2024-01-18, with the ex-dividend date set for 2024-01-10. 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 Guardian Capital Group Ltd's dividend performance and assess its sustainability.
What Does Guardian Capital Group Ltd Do?
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Guardian Capital Group Ltd is a diversified financial services company. It operates in three reportable segments: Investment Management, Wealth Management, and Corporate Activities and Investments. The majority of revenue is derived from the Investment Management segment, which primarily involves earning management fees relating to investment management services provided to clients.
A Glimpse at Guardian Capital Group Ltd's Dividend History
Guardian Capital Group Ltd 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 Guardian Capital Group Ltd's Dividend Yield and Growth
As of today, Guardian Capital Group Ltd currently has a 12-month trailing dividend yield of 2.78% and a 12-month forward dividend yield of 3.05%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Guardian Capital Group Ltd's annual dividend growth rate was 16.10%. Extended to a five-year horizon, this rate increased to 21.30% per year. And over the past decade, Guardian Capital Group Ltd's annual dividends per share growth rate stands at an impressive 15.50%.
Based on Guardian Capital Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Guardian Capital Group Ltd stock as of today is approximately 7.30%.
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, Guardian Capital Group Ltd's dividend payout ratio is 0.41.
Guardian Capital Group Ltd's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Guardian Capital Group Ltd's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Guardian Capital Group Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Guardian Capital Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Guardian Capital Group Ltd's revenue has increased by approximately -6.90% per year on average, a rate that underperforms approximately 68.97% 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, Guardian Capital Group Ltd's earnings increased by approximately -2.00% per year on average, a rate that underperforms approximately 63.23% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.00%, which underperforms approximately 37.29% of global competitors.
Investing in Guardian Capital Group Ltd's Dividend Future
Guardian Capital Group Ltd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics collectively paint a picture of a company committed to rewarding shareholders while maintaining a balanced approach to its financial health. Despite some growth metrics revealing challenges, the solid dividend history and yield on cost suggest that Guardian Capital Group Ltd remains an intriguing option for dividend-seeking investors. As always, it's essential for investors to consider the broader economic context and the company's strategic position within the industry when making investment decisions.
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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.
