Logitech International SA (LOGI): A Deep Dive into Its Dividend Performance and Sustainability
Understanding the Past and Future of LOGI's Dividend Payments
Logitech International SA (NASDAQ:LOGI) recently announced a dividend of $1.06 per share, payable on 2023-09-27, with the ex-dividend date set for 2023-09-25. 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 deep dive into Logitech International SAs dividend performance and assess its sustainability.
What Does Logitech International SA Do?
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Logitech International SA is a Switzerland-based provider of personal computer and mobile accessories for navigation, video communication, and collaboration, smart home, and other applications. Its product portfolio includes mice, keyboards, charging stands, tablet cases, car mounts for mobile devices, remotes, home cameras, home switches, controllers, bluetooth speakers, surround sound, webcams, and conference cameras. It operates in a single segment namely, Peripherals. The firm generates revenue from the Americas, EMEA (Europe, Middle East, Africa), and the Asia Pacific region.
A Glimpse at Logitech International SA's Dividend History
Logitech International SA has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Logitech International SA's Dividend Yield and Growth
As of today, Logitech International SA currently has a 12-month trailing dividend yield of 1.37% and a 12-month forward dividend yield of 1.74%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Logitech International SA's annual dividend growth rate was 8.90%. Extended to a five-year horizon, this rate increased to 9.00% per year. And over the past decade, Logitech International SA's annual dividends per share growth rate stands at an impressive 10.20%.
Based on Logitech International SA's dividend yield and five-year growth rate, the 5-year yield on cost of Logitech International SA stock as of today is approximately 2.11%.
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, Logitech International SA's dividend payout ratio is 0.49.
Logitech International SA's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Logitech International SA's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of 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. Logitech International SA'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 Logitech International SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Logitech International SA's revenue has increased by approximately 15.00% per year on average, a rate that outperforms than approximately 78.48% 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, Logitech International SA's earnings increased by approximately -6.80% per year on average, a rate that outperforms than approximately 25.25% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 18.90%, which outperforms than approximately 64.42% of global competitors.
Next Steps
In conclusion, Logitech International SA's consistent dividend payments, impressive dividend growth rate, moderate payout ratio, high profitability, and robust growth metrics make it a strong contender for dividend investors. However, as with any investment, it is essential to conduct thorough research and consider the overall health and future prospects of the company before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
