San Miguel Corp's Dividend Analysis
Assessing the Sustainability and Growth of San Miguel Corp's Dividends
San Miguel Corp (SMGBF) recently announced a dividend of $0.35 per share, payable on 2024-04-26, with the ex-dividend date set for 2024-03-26. 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 San Miguel Corp's dividend performance and assess its sustainability.
What Does San Miguel Corp Do?
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San Miguel Corp is a holding company based in the Philippines. The company's operating segments include food and beverage; packaging; energy; fuel and oil; and infrastructure. The company generates a majority of its revenue from the fuel and oil segments. The fuel and oil segment is engaged in refining crude oil and marketing and distribution of refined petroleum products.
A Glimpse at San Miguel Corp's Dividend History
San Miguel Corp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down San Miguel Corp's Dividend Yield and Growth
As of today, San Miguel Corp currently has a 12-month trailing dividend yield of 1.43% and a 12-month forward dividend yield of 1.44%. This suggests an expectation of increased dividend payments over the next 12 months. And over the past decade, San Miguel Corp's annual dividends per share growth rate stands at 0.40%. Based on San Miguel Corp's dividend yield and five-year growth rate, the 5-year yield on cost of San Miguel Corp stock as of today is approximately 1.43%.
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, San Miguel Corp's dividend payout ratio is 0.18. San Miguel Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks San Miguel Corp's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 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. San Miguel Corp'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 San Miguel Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. San Miguel Corp's revenue has increased by approximately 13.90% per year on average, a rate that outperforms approximately 71.13% of global competitors.
Concluding Insights on San Miguel Corp's Dividend Fortitude
San Miguel Corp's dividend payments, modest growth rate, conservative payout ratio, and strong profitability and growth metrics paint a picture of a company that values returning capital to shareholders while maintaining a focus on sustainable growth. Investors contemplating the addition of SMGBF to their portfolios may find reassurance in the company's steady dividend history and promising financial health. As the market landscape evolves, will San Miguel Corp continue to provide the stability and growth that dividend-seeking investors desire? Only time will tell, but the current indicators suggest a positive trajectory. For those looking to discover more high-dividend yield opportunities, 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.
