Kaiser Aluminum Corp's Dividend Analysis
An In-depth Look at Kaiser Aluminum Corp's Dividend Performance and Sustainability
Kaiser Aluminum Corp (NASDAQ:KALU) recently announced a dividend of $0.77 per share, payable on 2023-11-15, with the ex-dividend date set for 2023-10-24. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This article, leveraging data from GuruFocus, delves into Kaiser Aluminum Corp's dividend performance and sustainability.
Understanding Kaiser Aluminum Corp's Business Model
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Kaiser Aluminum Corp produces and sells semi-fabricated specialty aluminum products primarily to industrial customers. The company purchases primary and scrap aluminum, primarily from its five largest suppliers, and processes it into specialized value-added products. Kaiser produces high-strength aluminum products for the aerospace industry, specialized aluminum extrusions for the automotive industry, and also sells products to customers in the general engineering industry. Nearly all of Kaiser's revenue is generated in the US, with the remainder coming from Canada. The company's operations are also located in the U.S. and Canada.
Tracing Kaiser Aluminum Corp's Dividend History
Kaiser Aluminum Corp has maintained a consistent dividend payment record since 2007, with dividends distributed on a quarterly basis. The company has increased its dividend each year since 2007, earning it the status of a dividend achiever. This accolade is given to companies that have increased their dividend each year for at least the past 16 years.
Unpacking Kaiser Aluminum Corp's Dividend Yield and Growth
Kaiser Aluminum Corp currently has a 12-month trailing dividend yield of 4.80% and a 12-month forward dividend yield of 4.80%, indicating expected similar dividend payments over the next 12 months. Over the past three years, Kaiser Aluminum Corp's annual dividend growth rate was 8.70%, extending to 9.20% per year over a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at an impressive 11.60%.
Evaluating the Sustainability of Kaiser Aluminum Corp's Dividend
The sustainability of Kaiser Aluminum Corp's dividend can be assessed by evaluating its 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 2023-06-30, Kaiser Aluminum Corp's dividend payout ratio is 4.97, which may suggest that the company's dividend may not be sustainable.
Kaiser Aluminum Corp's profitability rank stands at 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Looking at Kaiser Aluminum Corp's Growth Metrics
Kaiser Aluminum Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Kaiser Aluminum Corp's revenue has increased by approximately 32.10% per year on average, a rate that outperforms approximately 82.69% of global competitors.
Final Thoughts
In conclusion, Kaiser Aluminum Corp's consistent dividend payments, impressive growth rate, and strong profitability suggest a promising future for the company. However, the sustainability of its dividends, as indicated by its payout ratio, warrants close monitoring. As always, investors should conduct thorough research and consider various factors before making investment decisions.
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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.
