Owens-Corning Inc's Dividend Analysis
Examining the Dividend Profile of Owens-Corning Inc
Owens-Corning Inc (NYSE:OC) recently announced a dividend of $0.6 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-01. 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 Owens-Corning Inc's dividend performance and assess its sustainability.
What Does Owens-Corning Inc Do?
Warning! GuruFocus has detected 10 Warning Signs with ASXFY.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with three reportable segments: Composites, Insulation, and Roofing. It generates maximum revenue from the Roofing segment. Its Roofing segment laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials, and oxidized asphalt. It meets the growing demand for longer-lasting, aesthetically attractive laminate products with modest capital investment.
A Glimpse at Owens-Corning Inc's Dividend History
Owens-Corning Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Owens-Corning Inc has increased its dividend each year since 2014, earning it the status of a dividend achiever, a distinction awarded to companies with at least a decade of consecutive dividend increases.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Owens-Corning Inc's Dividend Yield and Growth
As of today, Owens-Corning Inc currently has a 12-month trailing dividend yield of 1.45% and a 12-month forward dividend yield of 1.62%. This indicates an expectation of increased dividend payments over the next 12 months. Over the past three years, Owens-Corning Inc's annual dividend growth rate was 30.10%. When extended to a five-year horizon, this rate decreased to 20.30% per year. Based on Owens-Corning Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Owens-Corning Inc stock as of today is approximately 3.65%.
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, Owens-Corning Inc's dividend payout ratio is 0.16.
Owens-Corning Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Owens-Corning Inc's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 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. Owens-Corning Inc'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 Owens-Corning Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Owens-Corning Inc's revenue has increased by approximately 17.90% per year on average, outperforming approximately 82.69% 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, Owens-Corning Inc's earnings increased by approximately 60.20% per year on average, outperforming approximately 90% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 29.70%, outperforms approximately 87.67% of global competitors.
Next Steps
In conclusion, Owens-Corning Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, strong profitability, and solid growth metrics paint a promising picture for value investors. These factors collectively suggest that the company is well-positioned to maintain, if not increase, its dividends in the foreseeable future. Investors seeking to expand their portfolio with dividend-paying stocks may find Owens-Corning Inc an attractive option. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener.
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.
