Johnson Outdoors Inc's Dividend Analysis
Assessing the Sustainability and Growth of Johnson Outdoors Inc's Dividend
Johnson Outdoors Inc (NASDAQ:JOUT) recently announced a dividend of $0.33 per share, payable on 2024-01-25, with the ex-dividend date set for 2024-01-10. 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 Johnson Outdoors Inc's dividend performance and assess its sustainability.
What Does Johnson Outdoors Inc Do?
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Johnson Outdoors Inc is a manufacturer and marketer of branded seasonal, outdoor recreation products used for fishing from a boat, diving, paddling, hiking and camping. The company has four operating segments: Fishing, Camping, Watercraft Recreation, and Diving. It generates maximum revenue from the Fishing segment which produces and markets products under different brands such as Minn Kota electric motors for quiet trolling or primary propulsion, marine battery chargers and shallow water anchors; Humminbird sonar and GPS equipment for fish finding, navigation and marine cartography; and Cannon downriggers for controlled-depth fishing. Geographically, it derives a majority of revenue from the United States and also has a presence in Europe, Canada, and other regions.
A Glimpse at Johnson Outdoors Inc's Dividend History
Johnson Outdoors Inc has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Johnson Outdoors Inc's Dividend Yield and Growth
As of today, Johnson Outdoors Inc currently has a 12-month trailing dividend yield of 2.61% and a 12-month forward dividend yield of 2.74%. This suggests an expectation of increased dividend payments over the next 12 months. Johnson Outdoors Inc's dividend yield of 2.61% is near a 10-year high and outperforms 55.96% of global competitors in the Travel & Leisure industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Johnson Outdoors Inc's annual dividend growth rate was 22.20%. Extended to a five-year horizon, this rate increased to 24.50% per year. Based on Johnson Outdoors Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Johnson Outdoors Inc stock as of today is approximately 7.81%.
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 2023-09-30, Johnson Outdoors Inc's dividend payout ratio is 0.65.
Johnson Outdoors Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Johnson Outdoors Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Johnson Outdoors Inc'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 Johnson Outdoors Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Johnson Outdoors Inc's revenue has increased by approximately 3.30% per year on average, a rate that outperforms approximately 60% 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, Johnson Outdoors Inc's earnings increased by approximately -29.70% per year on average, a rate that outperforms approximately 17.67% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -10.40%, which outperforms approximately 28.51% of global competitors.
Next Steps
In conclusion, Johnson Outdoors Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture of a company that values shareholder return while maintaining a strong financial position for future growth. The consistency in dividend payments, coupled with a solid profitability rank and promising growth prospects, makes Johnson Outdoors Inc an interesting consideration for value investors focused on dividend income. As the company navigates the dynamic outdoor recreation market, its financial health and strategic initiatives will be key factors to watch for sustaining and growing dividends. Will Johnson Outdoors Inc continue to navigate the currents of market change and maintain its dividend growth streak? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find more opportunities like Johnson Outdoors Inc.
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.
