Myers Industries Inc: A Deep Dive into Its Dividend Performance and Sustainability
Understanding the Dividend History, Yield, and Growth of Myers Industries Inc (NYSE:MYE)
Myers Industries Inc (NYSE:MYE) recently announced a dividend of $0.14 per share, payable on 2023-10-04, with the ex-dividend date set for 2023-09-12. As investors anticipate this forthcoming payment, the company's dividend history, yield, and growth rates have come under the spotlight. This article uses GuruFocus data to delve into Myers Industries Inc's dividend performance and assess its sustainability.
Company Overview: Myers Industries Inc
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Myers Industries Inc is a plastic manufacturer of returnable packaging, storage and safety products, and specialty molding. The company manufactures a range of polymer products for various markets, including industrial, agricultural, automotive, commercial, and consumer markets. It operates through two segments: The Material Handling segment, which designs, manufactures, and markets a variety of plastic and metal products, and The Distribution segment, which offers tools, equipment, and supplies used for tire, wheel, and under-vehicle service on various vehicles.
Myers Industries Inc's Dividend History
Myers Industries Inc has maintained a consistent dividend payment record since 1989, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 1992, earning it the status of a dividend aristocrat, a title given to companies that have consistently increased their dividend each year for at least the past 31 years.
Understanding Myers Industries Inc's Dividend Yield and Growth
As of today, Myers Industries Inc has a 12-month trailing dividend yield and a 12-month forward dividend yield of 3.05%, suggesting an expectation of consistent dividend payments over the next 12 months. Over the past decade, the company's annual dividends per share growth rate stands at 4.00%. Based on its dividend yield and five-year growth rate, the 5-year yield on cost of Myers Industries Inc stock as of today is approximately 3.05%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to examine 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Myers Industries Inc's dividend payout ratio is 0.39.
Myers Industries Inc's profitability rank of 7 out of 10 as of 2023-06-30 suggests good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Future Outlook: Growth Metrics
A company must have robust growth metrics to ensure the sustainability of dividends. Myers Industries Inc's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Myers Industries Inc's revenue has increased by approximately 19.10% per year on average, a rate that outperforms approximately 85.67% 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, Myers Industries Inc's earnings increased by approximately 34.10% per year on average, a rate that outperforms approximately 77.16% of global competitors.
Conclusion
Given Myers Industries Inc's consistent dividend payments, growth rate, reasonable payout ratio, and good profitability and growth metrics, the company appears to offer a sustainable dividend for investors. However, investors should continue to monitor these factors to ensure continued dividend sustainability. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
