A-Mark Precious Metals Inc's Dividend Analysis
An In-Depth Look at AMRK's Dividend Sustainability and Performance
A-Mark Precious Metals Inc(NASDAQ:AMRK) recently announced a dividend of $0.2 per share, payable on 2024-01-29, with the ex-dividend date set for 2024-01-12. 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 A-Mark Precious Metals Inc's dividend performance and assess its sustainability.
What Does A-Mark Precious Metals Inc Do?
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A-Mark Precious Metals Inc is a precious metal trading company. It is principally engaged in the wholesale of gold, silver, platinum, and palladium bullion and related products in the form of bars, wafers, coins, and grains. The company's operating segments include Wholesale Trading and Ancillary Services; Secured Lending, and Direct Sales. It generates maximum revenue from the Wholesale Trading and Ancillary Services segment. The Wholesale Trading and Ancillary Services segment comprises business units such as Industrial, Coin and Bar, Trading and Finance, Storage, Logistics, and Mint. Geographically, it derives a majority of its revenue from the United States.
A Glimpse at A-Mark Precious Metals Inc's Dividend History
A-Mark Precious Metals Inc has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down A-Mark Precious Metals Inc's Dividend Yield and Growth
As of today, A-Mark Precious Metals Inc currently has a 12-month trailing dividend yield of 2.94% and a 12-month forward dividend yield of 2.94%. This suggests an expectation of the same dividend payments over the next 12 months. Based on A-Mark Precious Metals Inc's dividend yield and five-year growth rate, the 5-year yield on cost of A-Mark Precious Metals Inc stock as of today is approximately 2.94%.
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 2023-09-30, A-Mark Precious Metals Inc's dividend payout ratio is 0.15.
A-Mark Precious Metals Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks A-Mark Precious Metals Inc's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. 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. A-Mark Precious Metals Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and A-Mark Precious Metals Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. A-Mark Precious Metals Inc's revenue has increased by approximately -0.80% per year on average, a rate that underperforms approximately 67.12% 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, A-Mark Precious Metals Inc's earnings increased by approximately 43.30% per year on average, a rate that underperforms approximately 19.61% of global competitors.
Final Thoughts on A-Mark Precious Metals Inc's Dividend Profile
In conclusion, A-Mark Precious Metals Inc's recent dividend declaration is a testament to its consistent dividend history and a signal of its commitment to shareholder returns. The company's modest payout ratio and fair profitability rank offer a degree of confidence in the sustainability of its dividends. While growth metrics present a mixed picture with strong earnings growth but lagging revenue performance, investors should weigh these factors carefully. A-Mark Precious Metals Inc appears to be navigating a balance between returning value to shareholders and investing in future growth. For investors seeking dividend opportunities, 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.
