Oshkosh Corp's Dividend Analysis
Understanding Oshkosh Corp's Dividend Dynamics
Oshkosh Corp (NYSE:OSK) recently announced a dividend of $0.46 per share, payable on 2024-02-29, with the ex-dividend date set for 2024-02-14. 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 Oshkosh Corp's dividend performance and assess its sustainability.
What Does Oshkosh Corp Do?
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Oshkosh Corp is the top producer of access equipment, specialty vehicles, and military trucks. It serves diverse end markets, where it is typically the market share leader in North America, or, in the case of JLG aerial work platforms, a global leader. In recent years, the company has manufactured joint light tactical vehicles, or JLTV, for the U.S. Department of Defense. However, Oshkosh recently lost the JLTV recompete, bringing its U.S. Postal Service contract into focus, which calls for the electrification of U.S. postal vehicles. The company reports three segmentsaccess equipment (52% of revenue), defense (22%), and vocational (27%)and generated $9.6 billion in revenue in 2023.
A Glimpse at Oshkosh Corp's Dividend History
Oshkosh Corp has maintained a consistent dividend payment record since 2013, with dividends distributed on a quarterly basis. Since 2014, Oshkosh Corp has increased its dividend each year, earning it the title of a dividend achievera distinction given to companies that have raised their dividend each year for at least the past 10 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Oshkosh Corp's Dividend Yield and Growth
Oshkosh Corp currently boasts a 12-month trailing dividend yield of 1.46% and a forward dividend yield of 1.62%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Oshkosh Corp's annual dividend growth rate was 11.00%, which rose to 11.20% when extended to a five-year horizon. Consequently, the 5-year yield on cost for Oshkosh Corp stock is approximately 2.48% as of today.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one must evaluate the company's payout ratio. Oshkosh Corp's dividend payout ratio is currently at a modest 0.18 as of 2023-12-31, suggesting that a significant portion of earnings is retained for future growth and to weather potential downturns. Furthermore, Oshkosh Corp's profitability rank stands at 7 out of 10, indicating good profitability prospects. The company has also reported positive net income each year for the past decade, reinforcing its strong profitability.
Growth Metrics: The Future Outlook
Oshkosh Corp's growth rank of 7 out of 10 underlines a positive growth trajectory compared to its competitors. With an average annual revenue increase of 13.70%, Oshkosh Corp outperforms approximately 70.3% of global competitors. Additionally, its 3-year EPS growth rate of 28.80% surpasses approximately 75.15% of global competitors. However, the company's 5-year EBITDA growth rate of -1.60% outperforms about 35.34% of global competitors, indicating mixed performance in this metric.
Next Steps
Considering Oshkosh Corp's consistent dividend payments, robust growth in dividends, modest payout ratio, strong profitability, and solid growth metrics, the company presents an attractive profile for value investors focused on dividend income. The future prospects for Oshkosh Corp's dividend sustainability seem promising, given the company's strategic initiatives and competitive positioning. As investors ponder their next move, it's worth contemplating how Oshkosh Corp will continue to balance shareholder returns with strategic investments for long-term growth.
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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.
