International Game Technology PLC's Dividend Analysis
Unveiling the Dividend Dynamics of International Game Technology PLC
International Game Technology PLC (NYSE:IGT) recently announced a dividend of $0.2 per share, payable on 2024-04-09, with the ex-dividend date set for 2024-03-25. 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 International Game Technology PLC's dividend performance and assess its sustainability.
What Does International Game Technology PLC Do?
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International Game Technology PLC is a gaming company that delivers entertaining and responsible gaming experiences for players across all channels. The company's operating segments include Global Lottery, Global Gaming, and PlayDigital. It generates maximum revenue from the Global Lottery segment. Global Lottery segment provides lottery products and services to governmental organizations through operating contracts, facilities management contracts, lottery management agreements, and product sales contracts. Geographically, it derives a majority of revenue from the United States.
A Glimpse at International Game Technology PLC's Dividend History
International Game Technology PLC 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 International Game Technology PLC's Dividend Yield and Growth
As of today, International Game Technology PLC currently has a 12-month trailing dividend yield of 3.71% and a 12-month forward dividend yield of 3.71%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, International Game Technology PLC's annual dividend growth rate was 58.70%. Based on International Game Technology PLC's dividend yield and five-year growth rate, the 5-year yield on cost of International Game Technology PLC stock as of today is approximately 3.71%.
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 2023-12-31, International Game Technology PLC's dividend payout ratio is 0.53.
International Game Technology PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks International Game Technology PLC's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. International Game Technology PLC'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 International Game Technology PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. International Game Technology PLC's revenue has increased by approximately 11.70% per year on average, a rate that outperforms approximately 67.18% of global competitors.
Investing in International Game Technology PLC's Dividend Future
Considering International Game Technology PLC's consistent dividend payments, robust dividend growth rate, sensible payout ratio, and fair profitability and growth metrics, investors may find the stock to be an attractive option for income-focused portfolios. While past performance is indicative, it's also crucial to keep an eye on the broader industry trends and the company's strategic responses to changes within the gaming sector. Prudent investors should continue to monitor International Game Technology PLC's financial health and market position to ensure their investment aligns with their financial goals.
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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.
