Owens-Corning Inc's Dividend Analysis
Assessing the Sustainability of Owens-Corning Inc's Dividend Payments
Owens-Corning Inc (NYSE:OC) recently announced a dividend of $0.6 per share, payable on 2024-01-19, with the ex-dividend date set for 2024-01-05. 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?
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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. The company generates maximum revenue from the Insulation segment. Its Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing, and accessories. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications.
A Glimpse at Owens-Corning Inc's Dividend History
Owens-Corning Inc has maintained a consistent dividend payment record since 2014, with dividends currently distributed on a quarterly basis. The stock is listed as a dividend achiever, an honor that is given to companies that have increased 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 Owens-Corning Inc's Dividend Yield and Growth
As of today, Owens-Corning Inc currently has a 12-month trailing dividend yield of 1.47% and a 12-month forward dividend yield of 1.68%, indicating 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 20.40%, which decreased to 12.90% per year over a five-year horizon. 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 2.70%.
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. As of 2023-09-30, Owens-Corning Inc's dividend payout ratio is 0.15, suggesting that the company retains a significant part of its earnings for future growth and unexpected downturns. Furthermore, Owens-Corning Inc's profitability rank of 9 out of 10, as of 2023-09-30, indicates good profitability prospects and consistent net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Owens-Corning Inc's robust growth rank of 9 out of 10 suggests a favorable growth trajectory relative to competitors. The company's strong revenue model is reflected in its revenue per share and a 3-year revenue growth rate of 15.40% per year, outperforming approximately 79.82% of global competitors. Additionally, Owens-Corning Inc's 3-year EPS growth rate of 48.50% per year outperforms approximately 86.24% of global competitors. Lastly, the company's impressive 5-year EBITDA growth rate of 29.50% outperforms approximately 87.87% of global competitors, further solidifying its financial health and ability to sustain dividends.
Engaging Conclusion: Owens-Corning Inc's Dividend Outlook
In conclusion, Owens-Corning Inc's consistent dividend growth, reasonable payout ratio, strong profitability, and impressive growth metrics position it as a potentially attractive option for dividend-seeking investors. As the company continues to navigate the competitive landscape of building materials, its financial health suggests a capacity to maintain and potentially increase dividend payments in the future. Investors should consider whether Owens-Corning Inc aligns with their investment strategy and risk profile, keeping in mind the company's performance and industry trends. Will Owens-Corning Inc continue its streak of dividend achievements, and how will this influence your investment decisions? GuruFocus Premium users can further explore high-dividend yield opportunities using 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.
