Robert Half Inc's Dividend Analysis
Understanding the Dividend Prospects of Robert Half Inc
Robert Half Inc (NYSE:RHI) recently announced a dividend of $0.48 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-22. 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. Dividends are currently distributed on a quarterly basis. Robert Half Inc has increased its dividend each year since 2004. 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 19 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 2.30% and a 12-month forward dividend yield of 2.35%. This suggests 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 11.50%. Extended to a five-year horizon, this rate increased to 11.90% per year. And over the past decade, Robert Half Inc's annual dividends per share growth rate stands at an impressive 11.30%.
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 4.04%.
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, Robert Half Inc's dividend payout ratio is 0.42.
Robert Half Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Robert Half Inc's profitability 10 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. Robert Half Inc's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Robert Half Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Robert Half Inc's revenue has increased by approximately 8.30% per year on average, a rate that outperforms approximately 60.72% 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, Robert Half Inc's earnings increased by approximately 22.90% per year on average, a rate that outperforms approximately 68.42% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 17.60%, which outperforms approximately 69.87% of global competitors.
Next Steps
Considering Robert Half Inc's consistent dividend payments, robust growth rate, prudent payout ratio, and strong profitability and growth metrics, the company presents a compelling case for investors seeking stable dividends combined with potential growth. Investors should, however, continue to monitor the company's financial health and market position to ensure that their investment thesis remains valid over time. Will the company's strategic initiatives and industry position enable it to continue its dividend growth streak? That's a question value investors need to ponder as they assess Robert Half Inc's long-term potential.
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.
