RB Global Inc's Dividend Analysis
A Comprehensive Look at RB Global Inc's Upcoming Dividend Payment
RB Global Inc (NYSE:RBA) recently announced a dividend of $0.27 per share, payable on 2024-03-01, with the ex-dividend date set for 2024-02-08. 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 RB Global Inc's dividend performance and assess its sustainability.
What Does RB Global Inc Do?
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RB Global operates the world's largest auction for heavy equipment. The company started as a live auctioneer of industrial equipment, since then it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment. RB Global operates over 40 live auction sites in more than 12 countries, along with online marketplaces, including IronPlanet, Marketplace-E, and GovPlanet. Its agricultural auctions are frequently much smaller venues and can include liquidations of single farms. The company holds over 300 auctions yearly and sells $6 billion worth of equipment.
A Glimpse at RB Global Inc's Dividend History
RB Global Inc has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. RB Global Inc has increased its dividend each year since 2003. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 21 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down RB Global Inc's Dividend Yield and Growth
As of today, RB Global Inc currently has a 12-month trailing dividend yield of 1.68% and a 12-month forward dividend yield of 1.68%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, RB Global Inc's annual dividend growth rate was 12.20%. Extended to a five-year horizon, this rate decreased to 9.70% per year. And over the past decade, RB Global Inc's annual dividends per share growth rate stands at an impressive 10.40%.
Based on RB Global Inc's dividend yield and five-year growth rate, the 5-year yield on cost of RB Global Inc stock as of today is approximately 2.67%.
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 2023-09-30, RB Global Inc's dividend payout ratio is 0.38.
RB Global Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks RB Global Inc's profitability 9 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of 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. RB Global 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 RB Global Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. RB Global Inc's revenue has increased by approximately 10.00% per year on average, a rate that outperforms approximately 66.36% 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, RB Global Inc's earnings increased by approximately 16.10% per year on average, a rate that outperforms approximately 59.1% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 24.00%, which outperforms approximately 80.07% of global competitors.
Future Dividend Prospects for RB Global Inc
RB Global Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics collectively paint a picture of a robust company with a solid track record. The consistency in increasing dividends and maintaining a moderate payout ratio suggests a sustainable dividend policy. Coupled with high profitability and strong growth rates, RB Global Inc appears well-positioned to continue rewarding shareholders with dividends. Investors looking for dividend-paying stocks with promising financial health might find RB Global Inc an attractive option.
GuruFocus Premium users can screen for high-dividend yield stocks 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.
