Korn Ferry's Dividend Analysis
Assessing the Sustainability and Performance of Korn Ferry's Dividends
Korn Ferry (NYSE:KFY) recently announced a dividend of $0.33 per share, payable on 2024-01-12, with the ex-dividend date set for 2023-12-20. 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 Korn Ferry's dividend performance and assess its sustainability.
What Does Korn Ferry Do?
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Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The company's segments include Consulting; Digital; Executive Search and RPO and Professional Search.
A Glimpse at Korn Ferry's Dividend History
Korn Ferry has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Korn Ferry's Dividend Yield and Growth
As of today, Korn Ferry currently has a 12-month trailing dividend yield of 1.13% and a 12-month forward dividend yield of 1.44%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Korn Ferry's annual dividend growth rate was 14.50%. Extended to a five-year horizon, this rate decreased to 7.60% per year. Based on Korn Ferry's dividend yield and five-year growth rate, the 5-year yield on cost of Korn Ferry stock as of today is approximately 1.63%.
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 2023-10-31, Korn Ferry's dividend payout ratio is 0.33.
Korn Ferry's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Korn Ferry's profitability 9 out of 10 as of 2023-10-31, 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. Korn Ferry's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Korn Ferry's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Korn Ferry's revenue has increased by approximately 15.20% per year on average, a rate that outperforms approximately 78.28% 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, Korn Ferry's earnings increased by approximately 19.50% per year on average, a rate that outperforms approximately 63.64% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 21.50%, which outperforms approximately 76.34% of global competitors.
Next Steps
In conclusion, Korn Ferry's upcoming dividend payment, consistent dividend growth rate, manageable payout ratio, strong profitability, and robust growth metrics collectively paint a picture of a company that is well-positioned to maintain and potentially increase its dividend payments in the future. For value investors, these indicators are crucial in making informed decisions about the sustainability of a company's dividend. With Korn Ferry showing positive signs across these areas, it remains an attractive prospect for those focused on dividend income. Will Korn Ferry continue to uphold its reputation as a reliable dividend payer in the years to come? That's a question investors will be keenly observing.
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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.
