Network-1 Technologies Inc (NTIP): A Comprehensive Analysis of Its Dividend Performance
Unveiling the Dividend History, Yield, and Growth Rates of Network-1 Technologies Inc
Network-1 Technologies Inc (NTIP) recently announced a dividend of $0.05 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-18. 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 deep dive into Network-1 Technologies Inc's dividend performance and assess its sustainability.
What Does Network-1 Technologies Inc Do?
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Network-1 Technologies Inc is involved in the business of the development, licensing, and protection of intellectual property rights. The company's current strategy includes continuing to pursue licensing opportunities for its intellectual property assets.
A Glimpse at Network-1 Technologies Inc's Dividend History
Network-1 Technologies Inc has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Network-1 Technologies Inc's Dividend Yield and Growth
As of today, Network-1 Technologies Inc currently has a 12-month trailing dividend yield of 3.98% and a 12-month forward dividend yield of 3.98%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Network-1 Technologies Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Network-1 Technologies Inc stock as of today is approximately 3.98%.
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 2023-06-30, Network-1 Technologies Inc's dividend payout ratio is 0.00.
Network-1 Technologies Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Network-1 Technologies Inc's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Network-1 Technologies Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
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, Network-1 Technologies Inc's earnings increased by approximately -12.60% per year on average, a rate that outperforms than approximately 19.46% of global competitors.
Conclusion
Given Network-1 Technologies Inc's consistent dividend payments, stable growth rate, and fair profitability, the company presents an interesting case for dividend investors. However, the negative 3-year EPS growth rate warrants caution. Prospective investors should consider these factors in their decision-making process. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
