J&J Snack Foods Corp's Dividend Analysis
Understanding the Dividend Dynamics of J&J Snack Foods Corp
J&J Snack Foods Corp (NASDAQ:JJSF) recently announced a dividend of $0.74 per share, payable on April 9, 2024, with the ex-dividend date set for March 18, 2024. 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 J&J Snack Foods Corp's dividend performance and assess its sustainability.
What Does J&J Snack Foods Corp Do?
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J&J Snack Foods Corp manufactures, markets, and distributes snack foods and beverages to foodservice and retail supermarket outlets. The company's products include frozen beverages, juice, fruit bars, sorbet, cakes, and cookies that are distributed to various consumers, including restaurants, supermarkets, convenience stores, universities, theaters, and theme parks. The company operates in three business segments: food service, which sells snacks, desserts, and baked goods at the point-of-sale; retail supermarkets, which sells frozen and prepackaged products to supermarkets; and frozen beverages, which sells frozen beverages under brands Icee, Slush Puppie, and Parrot Ice in the United States, Mexico, and Canada.
A Glimpse at J&J Snack Foods Corp's Dividend History
J&J Snack Foods Corp has maintained a consistent dividend payment record since 2004, with dividends currently distributed on a quarterly basis. The stock is listed as a dividend achiever, an honor given to companies that have increased their dividend each year for at least the past 19 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down J&J Snack Foods Corp's Dividend Yield and Growth
As of today, J&J Snack Foods Corp has a 12-month trailing dividend yield of 2.00% and a 12-month forward dividend yield of 2.05%. This indicates an expectation of increased dividend payments over the next 12 months. J&J Snack Foods Corp's dividend yield is near a 10-year high and outperforms 45.24% of global competitors in the Consumer Packaged Goods industry, making it an attractive proposition for income investors.
Over the past three years, J&J Snack Foods Corp's annual dividend growth rate was 7.20%. Extended to a five-year horizon, this rate increased to 9.30% per year. And over the past decade, the annual dividends per share growth rate stands at an impressive 12.30%. Based on the current dividend yield and five-year growth rate, the 5-year yield on cost for J&J Snack Foods Corp stock is approximately 3.12%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. As of December 31, 2023, J&J Snack Foods Corp's dividend payout ratio is 0.66, suggesting a healthy balance between distributing earnings and retaining funds for growth. The company's profitability rank, which is 8 out of 10, indicates good profitability prospects. J&J Snack Foods Corp has reported positive net income for each year over the past decade, further solidifying its financial strength.
Growth Metrics: The Future Outlook
J&J Snack Foods Corp's growth rank of 8 out of 10 suggests a good growth trajectory compared to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model, outperforming 72.35% of global competitors with an average annual increase of 14.50%. Additionally, the 3-year EPS growth rate shows an impressive average yearly increase of 63.00%, outperforming 89.53% of global competitors. Lastly, the 5-year EBITDA growth rate, although negative at -4.80%, still outperforms 26.88% of global competitors.
Concluding Insights on J&J Snack Foods Corp's Dividend Profile
In conclusion, J&J Snack Foods Corp's consistent dividend payments, robust growth rate, reasonable payout ratio, and strong profitability and growth metrics paint a promising picture for value investors focused on dividend income. The company's ability to sustain and grow its dividends is supported by solid financial health and a competitive position in the market. Investors seeking high-dividend yield opportunities can explore further using GuruFocus's High Dividend Yield Screener.
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.
