John Wiley & Sons Inc's Dividend Analysis
An In-Depth Look at WLY's Dividend Sustainability and Growth
John Wiley & Sons Inc (NYSE:WLY) recently announced a dividend of $0.35 per share, payable on 2024-01-11, with the ex-dividend date set for 2023-12-26. 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 John Wiley & Sons Inc's dividend performance and assess its sustainability.
What Does John Wiley & Sons Inc Do?
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John Wiley & Sons Inc is a leading global provider of academic and professional content and services. With a focus on digital products and tech-enabled services, the company has successfully transitioned more than 85% of its total revenue to these areas. John Wiley & Sons Inc is organized into two customer-centric segments: the Academic segment, which includes Academic Publishing and University Services, and the Talent segment, which delivers training, sourcing, and upskilling solutions to corporate clients.
A Glimpse at John Wiley & Sons Inc's Dividend History
John Wiley & Sons Inc has a long-standing tradition of distributing dividends to its shareholders, with a consistent record dating back to 1984. The company not only provides quarterly dividends but is also recognized as a dividend achiever, having increased its dividend annually since 2000. This impressive streak underscores the company's commitment to delivering shareholder value over the long term.
Below is a chart showing the annual Dividends Per Share for tracking historical trends.
Breaking Down John Wiley & Sons Inc's Dividend Yield and Growth
As of today, John Wiley & Sons Inc boasts a trailing dividend yield of 4.16% and a forward dividend yield of 4.17%, indicating a positive outlook for dividend growth in the coming year. The company's dividend growth rate over the past three years stands at 0.70%, which climbs to 1.60% when viewed over a five-year period. Looking at the past decade, the annual dividends per share growth rate is an impressive 3.70%.
Factoring in John Wiley & Sons Inc's dividend yield and five-year growth rate, the 5-year yield on cost for the company's stock is approximately 4.50%.
The Sustainability Question: Payout Ratio and Profitability
When evaluating the sustainability of dividends, the dividend payout ratio is a critical metric. It indicates the proportion of earnings allocated to dividends. A lower ratio suggests a conservative approach, leaving ample earnings for growth and potential downturns. As of 2023-10-31, John Wiley & Sons Inc's dividend payout ratio is not applicable, indicating a need for further data to assess sustainability.
Moreover, the company's profitability rank of 7 out of 10 suggests healthy profitability relative to peers, with the company reporting net profits in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
John Wiley & Sons Inc's growth rank of 7 out of 10 reflects a favorable growth trajectory compared to competitors. The company's revenue per share and 3-year revenue growth rate of approximately 3.20% per year outperform 59.14% of global competitors, indicating a robust revenue model.
The 3-year EPS growth rate, despite averaging a decrease of -2.20% per year, still outperforms 41.18% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -2.40% outperforms 36.95% of global competitors.
Next Steps
Considering John Wiley & Sons Inc's track record of dividend payments, growth rates, payout ratio, profitability, and growth metrics, investors can be cautiously optimistic about the company's dividend prospects. While the payout ratio currently lacks sufficient data, the company's profitability and growth ranks provide a positive signal for the sustainability of its dividends. As investors weigh these factors, they should also consider the broader market trends and the company's strategic initiatives to adapt to the evolving educational and professional landscape.
For those seeking high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover potential investments.
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.
