Kemira Oyj's Dividend Analysis
An In-depth Look at the Company's Dividend Performance and Sustainability
Kemira Oyj (KOYJF) recently announced a dividend of $0.31 per share, payable on 2023-11-02, with the ex-dividend date set for 2023-10-25. 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 delve into Kemira Oyj's dividend performance and assess its sustainability.
What Does Kemira Oyj Do?
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Kemira Oyj offers sustainable chemical solutions for water-intensive industries. The company provides best-suited products and expertise to improve its customers' product quality, process, and resource efficiency. It primarily focuses on the pulp and paper, water treatment, and oil and gas industries.
A Glimpse at Kemira Oyj's Dividend History
Kemira Oyj has maintained a consistent dividend payment record since 2007, with dividends currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kemira Oyj's Dividend Yield and Growth
As of today, Kemira Oyj currently has a 12-month trailing dividend yield of 3.91% and a 12-month forward dividend yield of 4.16%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kemira Oyj's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate decreased to 2.20% per year. Over the past decade, Kemira Oyj's annual dividends per share growth rate stands at 0.90%.
Based on Kemira Oyj's dividend yield and five-year growth rate, the 5-year yield on cost of Kemira Oyj stock as of today is approximately 4.36%.
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 2023-06-30, Kemira Oyj's dividend payout ratio is 0.31.
Kemira Oyj's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kemira Oyj's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kemira Oyj's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Kemira Oyj's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kemira Oyj's revenue has increased by approximately 10.00% per year on average, a rate that outperforms approximately 51.79% 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, Kemira Oyj's earnings increased by approximately 27.70% per year on average, a rate that outperforms approximately 66.83% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 18.80% outperforms approximately 66.7% of global competitors.
Next Steps
In conclusion, Kemira Oyj's consistent dividend payments, reasonable growth rate, and strong profitability suggest a sustainable dividend in the foreseeable future. The company's robust growth metrics indicate a promising outlook, making it a potential candidate for dividend-focused investors. However, as with any investment, it is crucial to conduct thorough research and consider the company's overall financial health before making a decision.
GuruFocus Premium users can screen for high-dividend yield stocks 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.
