Myers Industries Inc's Dividend Analysis
Investigating the Dividend Profile of Myers Industries Inc
Myers Industries Inc (NYSE:MYE) recently announced a dividend of $0.14 per share, payable on 2024-01-03, with the ex-dividend date set for 2023-12-01. 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 Myers Industries Inc's dividend performance and assess its sustainability.
What Does Myers Industries Inc Do?
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Myers Industries Inc is a plastic manufacturer of returnable packaging, storage and safety products, and specialty molding. It manufactures a range of polymer products for industrial, agricultural, automotive, commercial, and consumer markets. It operates through the following segments: The Material Handling segment, which designs manufactures and markets a variety of plastic and metal products. The Distribution segment offers tools, equipment, and supplies used for tire, wheel, and under-vehicle service on passenger, heavy truck, and off-road vehicles.
A Glimpse at Myers Industries Inc's Dividend History
Myers Industries Inc has maintained a consistent dividend payment record since 1989. Dividends are currently distributed on a quarterly basis. Myers Industries Inc has increased its dividend each year since 1992. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 31 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Myers Industries Inc's Dividend Yield and Growth
As of today, Myers Industries Inc currently has a 12-month trailing dividend yield of 3.07% and a 12-month forward dividend yield of 3.07%. This suggests an expectation of same dividend payments over the next 12 months. And over the past decade, Myers Industries Inc's annual dividends per share growth rate stands at 4.00%. Based on Myers Industries Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Myers Industries Inc stock as of today is approximately 3.07%.
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, Myers Industries Inc's dividend payout ratio is 0.40. Myers Industries Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Myers Industries Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 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. Myers Industries Inc'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 Myers Industries Inc'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 86.07% 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 32.50% per year on average, a rate that outperforms approximately 76.68% of global competitors.
Conclusion: Evaluating Myers Industries Inc's Dividend Prospects
Considering Myers Industries Inc's consistent dividend payment history, its status as a dividend aristocrat, and a solid dividend yield, the company presents an attractive proposition for income-focused investors. The sustainability of its dividend is further supported by a prudent payout ratio and positive profitability and growth metrics. With a strong revenue model and impressive earnings growth, Myers Industries Inc appears to be well-positioned to continue its dividend payments. The question for value investors is whether Myers Industries Inc can maintain this trajectory in the face of industry trends and economic shifts. As always, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.
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.
