Rollins Inc's Dividend Analysis
Unveiling the Dividend Performance and Future Prospects
Rollins Inc (NYSE:ROL) recently announced a dividend of $0.15 per share, payable on 2023-12-11, with the ex-dividend date set for 2023-11-08. As investors eagerly anticipate this upcoming payment, it's crucial to scrutinize the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Rollins Inc's dividend performance and assess its sustainability.
What Does Rollins Inc Do?
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Rollins Inc is a global leader in route-based pest-control services, with operations spanning North, Central and South America, Europe, the Middle East and Africa, and Australia. Its portfolio of pest-control brands includes the prominent Orkin brand, a market leader in the U.S., where it boasts near national coverage, and in Canada. Residential pest and termite prevention dominates the services provided by Rollins Inc, owing to the group's ongoing focus on U.S. and Canadian markets.
A Glimpse at Rollins Inc's Dividend History
Rollins Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Rollins Inc's Dividend Yield and Growth
As of today, Rollins Inc has a 12-month trailing dividend yield of 1.37% and a 12-month forward dividend yield of 1.58%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Rollins Inc's annual dividend growth rate was 15.40%. Extended to a five-year horizon, this rate decreased to 13.80% per year. And over the past decade, Rollins Inc's annual dividends per share growth rate stands at an impressive 15.50%.
Based on Rollins Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Rollins Inc stock as of today is approximately 2.61%.
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, Rollins Inc's dividend payout ratio is 0.63.
Rollins Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Rollins 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 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. Rollins 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 Rollins Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Rollins Inc's revenue has increased by approximately 10.10% per year on average, a rate that outperforms approximately 71.43% 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, Rollins Inc's earnings increased by approximately 22.30% per year on average, a rate that outperforms approximately 66.67% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.90% outperforms approximately 80.85% of global competitors.
Next Steps
In conclusion, Rollins Inc's strong dividend performance, coupled with its impressive growth rate, payout ratio, and profitability metrics, signal a promising future for the company and its shareholders. As the company continues to grow and maintain its profitability, investors can expect sustainable and potentially increasing dividend payments. However, as with any investment, it is crucial to conduct thorough research and consider all relevant factors before making a decision.
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.
