Robert Half Inc's Dividend Analysis
Insights into Robert Half Inc's Upcoming Dividend Payment and Performance
Robert Half Inc (NYSE:RHI) recently announced a dividend of $0.53 per share, payable on 2024-03-15, with the ex-dividend date set for 2024-02-22. 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 Robert Half Inc's dividend performance and assess its sustainability.
What Does Robert Half Inc Do?
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Founded in 1948, Robert Half provides temporary, permanent, and outcome-based staffing for both in-person and remote positions in the finance and accounting, technology, legal, marketing, and administrative fields. Its subsidiary consulting arm, Protiviti, specializes in technology, risk, auditing, and compliance matters. The firm generates most of its sales inside the U.S. and stands as one of the largest specialized firms in the highly fragmented U.S. staffing industry. The firm generates annual revenue of around $7 billion.
A Glimpse at Robert Half Inc's Dividend History
Robert Half Inc has maintained a consistent dividend payment record since 2004, distributing dividends on a quarterly basis. The stock is also recognized as a dividend achiever, a prestigious title awarded to companies that have increased their dividend each year for at least the past 20 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Robert Half Inc's Dividend Yield and Growth
As of today, Robert Half Inc currently has a 12-month trailing dividend yield of 2.42% and a 12-month forward dividend yield of 2.66%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Robert Half Inc's annual dividend growth rate was 12.20%, which decreased slightly to 11.40% per year over a five-year horizon. However, over the past decade, the company's dividends per share have grown at an impressive annual rate of 11.60%.
Based on Robert Half Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Robert Half Inc stock as of today is approximately 4.15%.
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 2023-12-31, Robert Half Inc's dividend payout ratio is 0.59, indicating a balance between distributing earnings to shareholders and retaining funds for future growth and downturns.
Robert Half Inc's profitability rank of 8 out of 10, as of 2023-12-31, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its strong profitability.
Growth Metrics: The Future Outlook
Robert Half Inc's growth rank of 8 out of 10 indicates a positive growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate of approximately 10.20% per year outperforms 66.19% of global competitors.
Robert Half Inc's 3-year EPS growth rate of approximately 14.00% per year surpasses 54.81% of global competitors. Additionally, the 5-year EBITDA growth rate of 6.40% outperforms 45.13% of global competitors, signaling a strong potential for continued dividend payments.
Next Steps
In conclusion, Robert Half Inc's consistent dividend payments, impressive dividend growth rate, balanced payout ratio, strong profitability, and robust growth metrics make it an attractive option for investors seeking steady income. The company's financial health and industry position suggest a sustainable dividend outlook, providing a sense of security for income-focused portfolios.
For investors seeking to expand their portfolio with similar opportunities, GuruFocus Premium users can leverage the High Dividend Yield Screener to identify high-dividend yield stocks.
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.
