REV Group Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of REV Group Inc
REV Group Inc (NYSE:REVG) recently announced a dividend of $0.05 per share, payable on 2024-01-12, with the ex-dividend date set for 2023-12-22. 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 REV Group Inc's dividend performance and assess its sustainability.
What Does REV Group Inc Do?
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REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. It provides customized vehicle solutions for applications including essential needs, industrial and commercial, and consumer leisure. The operating segments of the company are Fire & Emergency, Commercial, and Recreation. The products of the company are sold to municipalities, government agencies, private contractors, consumers, and industrial and commercial end-users. It derives a majority of the revenue from the Fire and Emergency segment which includes manufacturing of fire apparatus and ambulance products. The company operates in the United States, Canada, and the rest of the world.
A Glimpse at REV Group Inc's Dividend History
REV Group Inc has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down REV Group Inc's Dividend Yield and Growth
As of today, REV Group Inc currently has a 12-month trailing dividend yield of 1.10% and a 12-month forward dividend yield of 1.10%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, REV Group Inc's annual dividend growth rate was 26.00%. Based on REV Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of REV Group Inc stock as of today is approximately 1.10%.
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 2023-10-31, REV Group Inc's dividend payout ratio is 0.26. REV Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks REV Group Inc's profitability 7 out of 10 as of 2023-10-31, suggesting good profitability prospects. The company has reported net profit in 8 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. REV Group Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and REV Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. REV Group Inc's revenue has increased by approximately 7.30% per year on average, a rate that outperforms approximately 54.19% of global competitors.
Conclusion: Evaluating REV Group Inc's Dividend Prospects
In conclusion, REV Group Inc's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and favorable profitability and growth metrics paint a promising picture for investors seeking reliable income streams. The company's strategic position within the specialty vehicle market and its financial health suggest that it is well-equipped to continue rewarding shareholders. As the dividend date approaches, investors may consider the potential of REV Group Inc as a component of their income-generating portfolio. For those seeking to explore further, 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.
