Iochpe-Maxion SA's Dividend Analysis
Assessing the Sustainability and Growth of IOCJY's Dividends
Iochpe-Maxion SA (IOCJY) recently announced a dividend of $0.01 per share, payable on 2024-04-09, with the ex-dividend date set for 2024-03-15. 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 Iochpe-Maxion SA's dividend performance and assess its sustainability.
What Does Iochpe-Maxion SA Do?
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Iochpe-Maxion SA is a Brazilian company involved in the manufacturing of automobile parts. Its core business is the production of wheels and structural components for light and commercial vehicles and equipment for railways. The company is a world leader in the production of automotive wheels. It has nearly 30 manufacturing facilities located globally and has customers worldwide and operates through three divisions; Maxion Wheels, Maxion Structural Components, and Amsted-Maxion. Maxion Wheels produces and markets a wide range of steel wheels, Maxion Structural Components, we produce struts, sleepers, and chassis assembled for light vehicles and Amsted-Maxion produces freight wagons, railway wheels and castings.
A Glimpse at Iochpe-Maxion SA's Dividend History
Iochpe-Maxion SA has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Iochpe-Maxion SA's Dividend Yield and Growth
As of today, Iochpe-Maxion SA currently has a 12-month trailing dividend yield of 1.65% and a 12-month forward dividend yield of 2.14%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Iochpe-Maxion SA's annual dividend growth rate was -23.20%. Extended to a five-year horizon, this rate increased to -2.80% per year. And over the past decade, Iochpe-Maxion SA's annual dividends per share growth rate stands at 7.70%. Based on Iochpe-Maxion SA's dividend yield and five-year growth rate, the 5-year yield on cost of Iochpe-Maxion SA stock as of today is approximately 1.43%.
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, Iochpe-Maxion SA's dividend payout ratio is 0.66. Iochpe-Maxion SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Iochpe-Maxion SA's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Iochpe-Maxion SA'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 Iochpe-Maxion SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Iochpe-Maxion SA's revenue has increased by approximately 20.00% per year on average, a rate that outperforms approximately 82.49% 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, Iochpe-Maxion SA's earnings increased by approximately 41.00% per year on average, a rate that outperforms approximately 79.73% of global competitors.
Next Steps for Investors
In conclusion, Iochpe-Maxion SA's consistent dividend payments, moderate growth in dividend rates, and a reasonable payout ratio underscore its commitment to shareholder returns. Furthermore, the company's solid profitability and favorable growth metrics provide reassurance about the sustainability of future dividends. As investors consider the potential for long-term income, Iochpe-Maxion SA's financial health and strategic market position should be factored into their investment decisions. For those seeking high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover similar investment prospects.
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.
