Masco Corp's Dividend Analysis
Understanding Masco Corp's Upcoming Dividend Payout
Masco Corp (NYSE:MAS) recently announced a dividend of $0.29 per share, payable on 2024-03-11, with the ex-dividend date set for 2024-02-21. 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 Masco Corp's dividend performance and assess its sustainability.
What Does Masco Corp Do?
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Masco manufactures a variety of home improvement and building products. The company's $5-billion plumbing segment, led by the Delta and Hansgrohe brands, sells faucets, showerheads, and other related plumbing fixtures and components. The $3-billion decorative architectural segment primarily sells paints and other coatings under the Behr and Kilz brands, but it also sells builder hardware and lighting products.
A Glimpse at Masco Corp's Dividend History
Masco Corp has maintained a consistent dividend payment record since 1986. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Masco Corp's Dividend Yield and Growth
As of today, Masco Corp currently has a 12-month trailing dividend yield of 1.56% and a 12-month forward dividend yield of 1.59%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Masco Corp's annual dividend growth rate was 27.90%. Extended to a five-year horizon, this rate decreased to 24.60% per year. And over the past decade, Masco Corp's annual dividends per share growth rate stands at an impressive 16.00%.
Based on Masco Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Masco Corp stock as of today is approximately 4.69%.
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 2023-12-31, Masco Corp's dividend payout ratio is 0.29.
Masco Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Masco Corp's profitability 9 out of 10 as of 2023-12-31, 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. Masco Corp'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 Masco Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Masco Corp's revenue has increased by approximately 9.00% per year on average, a rate that outperforms 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, Masco Corp's earnings increased by approximately 10.20% per year on average, a rate that outperforms approximately 55.86% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.30%, which outperforms approximately 70.58% of global competitors.
Concluding Insights on Masco Corp's Dividend Fortitude
Considering Masco Corp's consistent dividend payments, robust dividend growth rate, prudent payout ratio, and solid profitability and growth metrics, investors can be cautiously optimistic about the company's ability to maintain or possibly increase its dividend payouts in the future. The combination of a strong financial foundation and a favorable growth outlook positions Masco Corp as a potentially attractive choice for dividend-seeking investors. With the upcoming dividend date approaching, it's an opportune moment for investors to evaluate their positions in light of this analysis.
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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.
