Power Corporation of Canada's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
Power Corporation of Canada (PWCDF) recently announced a dividend of $0.56 per share, payable on 2024-05-01, with the ex-dividend date set for 2024-03-27. 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 Power Corporation of Canada's dividend performance and assess its sustainability.
What Does Power Corporation of Canada Do?
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Power Corporation of Canada is a diversified international management and holding company with interests in companies in the financial services, renewable energy, and other business sectors. Its portfolio includes significant holdings in Great-West Lifeco and IGM Financial, as well as strategic investments in global companies. With a focus on long-term value creation, Power Corporation of Canada's operations span across North America, Europe, and Asia.
A Glimpse at Power Corporation of Canada's Dividend History
Power Corporation of Canada has maintained a consistent dividend payment record since 2003, showcasing its commitment to providing shareholders with regular income. Dividends are currently distributed on a quarterly basis, reflecting the company's stable cash flow and financial health. Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down Power Corporation of Canada's Dividend Yield and Growth
As of today, Power Corporation of Canada currently has a 12-month trailing dividend yield of 5.53% and a forward dividend yield of 5.90%. This indicates an expectation of increased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was -1.50%, but looking at a longer timeframe, the five-year growth rate increased to 6.30% per year, and over the past decade, the annual dividends per share growth rate stands at 7.00%. The 5-year yield on cost for Power Corporation of Canada stock is approximately 7.51%, as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Power Corporation of Canada's dividends can be partly gauged by its dividend payout ratio, which is currently at 0.58. This figure suggests a balanced approach to distributing earnings while retaining sufficient funds for future growth and stability. The company's profitability rank, scored at 5 out of 10, indicates fair profitability in comparison to industry peers. Consistently positive net income over the past decade further reinforces the company's strong financial position.
Growth Metrics: The Future Outlook
Looking at growth metrics, Power Corporation of Canada's growth rank of 5 out of 10 suggests a fair growth outlook. While the company's revenue per share and 3-year revenue growth rate have experienced a decline, averaging -29.00% per year, it's important to consider this within the context of the company's overall business strategy and market conditions. The 3-year EPS growth rate of 0.20% per year and the 5-year EBITDA growth rate of 4.70% also provide insights into the company's earnings growth potential, which is a critical factor for sustaining dividend payments.
Concluding Thoughts on Power Corporation of Canada's Dividend Prospects
In conclusion, Power Corporation of Canada's upcoming dividend, historical dividend growth, and current payout ratio paint a picture of a company committed to shareholder returns. With fair profitability and growth metrics, the company appears to be managing its financial resources to support both dividend sustainability and future growth opportunities. Investors considering Power Corporation of Canada for its dividend prospects should also pay attention to broader market trends and the company's strategic initiatives to ensure a comprehensive investment analysis. For those seeking high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to help identify potential opportunities.
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.
