Kaman Corp's Dividend Analysis
Insight into Kaman Corp's Upcoming Dividend and Financial Health
Kaman Corp (NYSE:KAMN) recently announced a dividend of $0.2 per share, payable on 2024-04-11, with the ex-dividend date set for 2024-03-18. 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 Kaman Corp's dividend performance and assess its sustainability.
What Does Kaman Corp Do?
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Kaman Corp is a diversified company that conducts business in the aerospace and defense, medical, and industrial markets. The Engineered Products segment serves the aerospace and defense, industrial, and medical markets providing sophisticated proprietary aircraft bearings and components. The Precision Products segment serves the aerospace and defense markets providing precision safe and arming solutions for missile and bomb systems for the U.S. and allied militaries. The Structures segment serves the aerospace and defense and medical end markets providing sophisticated complex metallic and composite aerostructures for commercial, military, and general aviation fixed military and general aviation fixed and rotary wing aircraft, and medical imaging solutions.
A Glimpse at Kaman Corp's Dividend History
Kaman Corp has maintained a consistent dividend payment record since 1984, distributing dividends on a quarterly basis. The company has the prestigious title of a dividend aristocrat, having increased its dividend annually for at least 40 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Kaman Corp's Dividend Yield and Growth
As of today, Kaman Corp currently has a 12-month trailing dividend yield of 1.74% and a 12-month forward dividend yield of 1.74%, indicating an expectation of stable dividend payments over the next 12 months. The company's annual dividends per share growth rate over the past decade stands at 2.30%. The 5-year yield on cost of Kaman Corp stock as of today is approximately 1.74%.
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. Kaman Corp's dividend payout ratio as of 2023-12-31 is 1.76, which may suggest concerns regarding dividend sustainability. Additionally, Kaman Corp's profitability rank of 6 out of 10, as of 2023-12-31, suggests fair profitability, with the company reporting net profit in 8 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit robust growth metrics. Kaman Corp's growth rank of 6 out of 10 suggests a fair growth outlook. However, the company's revenue per share and 3-year revenue growth rate indicate a revenue increase of approximately -1.10% per year on average, underperforming about 69.17% of global competitors. Furthermore, Kaman Corp's 3-year EPS growth rate reveals an average annual decrease of -35.20%, underperforming about 86.1% of global competitors.
Final Thoughts on Kaman Corp's Dividend Profile
Considering Kaman Corp's long history of dividend payments and the title of a dividend aristocrat, investors may find the company's dividend track record appealing. However, the current payout ratio and mixed growth metrics present a nuanced picture, suggesting that while dividends have been consistent, future sustainability is not guaranteed without improvement in profitability and earnings. As investors weigh these factors, they should remain cognizant of the company's ability to navigate future challenges and sustain its dividend payments. GuruFocus Premium users can explore other high-dividend yield opportunities using the 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.
