The Hackett Group Inc (HCKT): A Closer Look at Its Dividend Performance and Sustainability
Unraveling the Dividend Metrics and Growth Potential of The Hackett Group Inc (NASDAQ:HCKT)
The Hackett Group Inc (NASDAQ:HCKT) recently announced a dividend of $0.11 per share, payable on 2023-10-06, with the ex-dividend date set for 2023-09-21. 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 deep dive into The Hackett Group Inc's dividend performance and assess its sustainability.
What Does The Hackett Group Inc Do?
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The Hackett Group Inc is an advisory firm. The company's offerings include executive advisory programs, benchmarking, executive advisory, business transformation, and cloud enterprise application implementation. The company's executive and practices advisory programs offer performance metrics, peer-learning opportunities, and practice implementation practices. Benchmarking services help organizations measure and assess internal efficiency and effectiveness. The business transformation programs help customers develop strategies to improve performance. The company's technology advisory services help clients improve decision-making capabilities and deploy software applications. The Hackett Group generates the majority of its revenue in the United States.
A Glimpse at The Hackett Group Inc's Dividend History
The Hackett Group Inc has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down The Hackett Group Inc's Dividend Yield and Growth
As of today, The Hackett Group Inc currently has a 12-month trailing dividend yield of 1.87% and a 12-month forward dividend yield of 1.87%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, The Hackett Group Inc's annual dividend growth rate was 6.90%. Extended to a five-year horizon, this rate decreased to 6.40% per year. And over the past decade, The Hackett Group Inc's annual dividends per share growth rate stands at an impressive 16.70%.
Based on The Hackett Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of The Hackett Group Inc stock as of today is approximately 2.55%.
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 2023-06-30, The Hackett Group Inc's dividend payout ratio is 0.35.
The Hackett Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks The Hackett Group Inc's profitability 8 out of 10 as of 2023-06-30, 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. The Hackett Group 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 The Hackett Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The Hackett Group Inc's revenue has increased by approximately 1.80% per year on average, a rate that underperforms than approximately 66.33% 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, The Hackett Group Inc's earnings increased by approximately 21.10% per year on average, a rate that underperforms than approximately 32.95% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 6.30%, which underperforms than approximately 61.21% of global competitors.
Next Steps
In conclusion, The Hackett Group Inc's consistent dividend payments, impressive growth rate, low payout ratio, and high profitability rank make it an attractive option for investors seeking stable dividend income. However, its growth metrics indicate a slower pace compared to global competitors, which could impact its ability to sustain dividends in the long run. Therefore, investors should keep a close eye on these factors when making investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
