NXP Semiconductors NV's Dividend Analysis
Delving into the Dividend Details of NXP Semiconductors NV
NXP Semiconductors NV (NASDAQ:NXPI) recently announced a dividend of $1.01 per share, payable on 2024-04-10, with the ex-dividend date set for 2024-03-20. 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 NXP Semiconductors NV's dividend performance and assess its sustainability.
What Does NXP Semiconductors NV Do?
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NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
A Glimpse at NXP Semiconductors NV's Dividend History
NXP Semiconductors NV has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down NXP Semiconductors NV's Dividend Yield and Growth
As of today, NXP Semiconductors NV currently has a 12-month trailing dividend yield of 1.70% and a 12-month forward dividend yield of 1.70%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, NXP Semiconductors NV's annual dividend growth rate was 39.30%. Extended to a five-year horizon, this rate increased to 48.60% per year. Based on NXP Semiconductors NV's dividend yield and five-year growth rate, the 5-year yield on cost of NXP Semiconductors NV stock as of today is approximately 12.32%.
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, NXP Semiconductors NV's dividend payout ratio is 0.32.
NXP Semiconductors NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NXP Semiconductors NV's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. NXP Semiconductors NV's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and NXP Semiconductors NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. NXP Semiconductors NV's revenue has increased by approximately 18.70% per year on average, a rate that outperforms approximately 68.39% 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, NXP Semiconductors NV's earnings increased by approximately 232.50% per year on average, a rate that outperforms approximately 98.47% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 48.20%, which outperforms approximately 89.15% of global competitors, further underscores its financial strength and potential for continued dividend payments.
Next Steps
In conclusion, NXP Semiconductors NV's upcoming dividend, along with its impressive history of dividend growth, reasonable payout ratio, and solid profitability and growth metrics, paint a positive picture for current and prospective investors. The company's financial health and industry position suggest that it could be a reliable source of dividend income. Investors looking for dividend-paying stocks should consider the robust profile of NXP Semiconductors NV, as it stands out as a potentially valuable addition to an income-focused portfolio. Will NXP Semiconductors NV continue its dividend growth streak, and how will its strategic initiatives influence future payouts? These are critical questions value investors may ponder as they assess the company's long-term prospects.
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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.
