Mitsubishi Corp's Dividend Analysis
Insight into Mitsubishi Corp's Upcoming Dividend and Historical Performance
Mitsubishi Corp (MSBHF) recently announced a dividend of $35 per share, payable on 0000-00-00, with the ex-dividend date set for 2024-03-28. 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 Mitsubishi Corp's dividend performance and assess its sustainability.
What Does Mitsubishi Corp Do?
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Mitsubishi Corp is a conglomerate that operates businesses in various industries. Its operating segments include Natural Gas, Industrial materials, Petroleum & chemicals, Mineral resource, Industrial Infrastructure, Automotive, Food & Consumer Industry, Power Solution, and Urban Development.
A Glimpse at Mitsubishi Corp's Dividend History
Mitsubishi Corp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Mitsubishi Corp's Dividend Yield and Growth
As of today, Mitsubishi Corp currently has a 12-month trailing dividend yield of 2.04% and a 12-month forward dividend yield of 2.23%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Mitsubishi Corp's annual dividend growth rate was 10.90%. Extended to a five-year horizon, this rate decreased to 9.00% per year. And over the past decade, Mitsubishi Corp's annual dividends per share growth rate stands at an impressive 13.50%.
Based on Mitsubishi Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Mitsubishi Corp stock as of today is approximately 3.14%.
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, Mitsubishi Corp's dividend payout ratio is 0.34.
Mitsubishi Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mitsubishi Corp's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Mitsubishi Corp's growth rank of 7 out of 10 suggests that the company 's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Mitsubishi Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Mitsubishi Corp's revenue has increased by approximately 15.30% per year on average, a rate that outperforms than approximately 74.42% 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, Mitsubishi Corp's earnings increased by approximately 30.00% per year on average, a rate that outperforms than approximately 66.13% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.30%, which outperforms than approximately 60.32% of global competitors.
Concluding Thoughts on Mitsubishi Corp's Dividend Prospects
Considering Mitsubishi Corp's stable dividend history, its promising dividend yield and growth rates, combined with a sustainable payout ratio and strong profitability, the company appears to be in a favorable position to continue rewarding shareholders with dividends. Additionally, the robust growth metrics suggest that Mitsubishi Corp is well-positioned for future financial health, which is vital for maintaining and potentially increasing dividend payments. Investors seeking to capitalize on dividend-paying stocks may find Mitsubishi Corp an attractive option, but as always, should conduct their own due diligence or consult with financial advisors.
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.
