MTY Food Group Inc's Dividend Analysis
Exploring MTY Food Group Inc's Upcoming Dividend and Its Historical Performance
MTY Food Group Inc (MTYFF) recently announced a dividend of $0.28 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-02-02. 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 MTY Food Group Inc's dividend performance and assess its sustainability.
What Does MTY Food Group Inc Do?
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MTY Food Group Inc is a franchisor in the quick service and casual dining food industry. Its activities consist of franchising and operating corporate-owned locations as well as the sale of retail products under a multitude of banners. The company's operating segment is based on geographical regions namely Canada and US, and International. The company brands include Big Smoke Burger, Cafe Depot, Country Style, Croissant Plus, Cultures, Extremepita, Fabrika, Jus Jugo Juice, Koya Japan, ManchuWok, Muffin plus, Valentine, Van Houtte, Shushiman and others.
A Glimpse at MTY Food Group Inc's Dividend History
MTY Food Group Inc has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down MTY Food Group Inc's Dividend Yield and Growth
As of today, MTY Food Group Inc currently has a 12-month trailing dividend yield of 1.73% and a 12-month forward dividend yield of 1.78%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, MTY Food Group Inc's annual dividend growth rate was 8.40%. Extended to a five-year horizon, this rate decreased to 0.80% per year. And over the past decade, MTY Food Group Inc's annual dividends per share growth rate stands at 6.80%.
Based on MTY Food Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of MTY Food Group Inc stock as of today is approximately 1.80%.
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 2023-08-31, MTY Food Group Inc's dividend payout ratio is 0.22.
MTY Food Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks MTY Food Group Inc's profitability 8 out of 10 as of 2023-08-31, suggesting good profitability prospects. 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. MTY Food Group Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and MTY Food Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. MTY Food Group Inc's revenue has increased by approximately 10.20% per year on average, a rate that outperforms approximately 76.31% 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, MTY Food Group Inc's earnings increased by approximately 5.70% per year on average, a rate that outperforms approximately 48.68% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.00%, which outperforms approximately 57.01% of global competitors.
Considering MTY Food Group Inc's consistent dividend payments, an encouraging dividend growth rate, a prudent payout ratio, strong profitability, and robust growth metrics, the company presents itself as a compelling option for value investors interested in dividend stocks. The consistency in increasing dividends and maintaining profitability bodes well for its ability to sustain dividend payments in the future. Investors looking to capitalize on dividend-paying stocks with growth potential may find MTY Food Group Inc an attractive proposition. With the company's solid fundamentals, will MTY Food Group Inc continue to be a staple in the portfolio of dividend-seeking investors?
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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.
