Imdex Ltd (IMDXF): A Comprehensive Analysis of Dividend Performance and Sustainability
Exploring Imdex Ltd's Dividend History, Yield, Growth, and Future Prospects
Imdex Ltd (IMDXF) recently announced a dividend of $0.02 per share, payable on 2023-10-12, with the ex-dividend date set for 2023-09-27. 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 Imdex Ltd's dividend performance and assess its sustainability.
Company Overview: Imdex Ltd
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Imdex Ltd is an Australia-based company engaged in providing mining, equipment, technology, and services. It operates in the Minerals sector which involves the principal activities of providing drilling fluid products, advanced downhole instrumentation, data solutions and geo-analytics services to exploration, development and production companies in the minerals sector. The group operates in the Americas; Asia Pacific and Africa/Europe. It derives a majority of revenue from the Americas.
A Glimpse at Imdex Ltd's Dividend History
Imdex Ltd has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Imdex Ltd's Dividend Yield and Growth
As of today, Imdex Ltd currently has a 12-month trailing dividend yield of 2.14% and a 12-month forward dividend yield of 2.61%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Imdex Ltd's annual dividend growth rate was 12.30%. Based on Imdex Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Imdex Ltd stock as of today is approximately 2.14%.
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, Imdex Ltd's dividend payout ratio is 0.45.
Imdex Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Imdex Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Imdex Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Imdex Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Imdex Ltd's revenue has increased by approximately 14.80% per year on average, a rate that outperforms approximately 75.37% 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, Imdex Ltd's earnings increased by approximately 12.10% per year on average, a rate that outperforms approximately 46.84% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.30%, outperforms approximately 53.57% of global competitors.
Conclusion: Imdex Ltd's Dividend Prospects
With a consistent history of dividend payments, an expected increase in dividend yields, a moderate payout ratio, strong profitability, and robust growth metrics, Imdex Ltd presents a promising dividend investment. However, as with any investment, it's crucial to conduct thorough research and consider the company's overall financial health before making a decision.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
