Screen Holdings Co Ltd's Dividend Analysis
Assessing the Sustainability and Growth of Screen Holdings Co Ltd's Dividends
Screen Holdings Co Ltd (DINRF) recently announced a dividend of $119 per share, payable on a date yet to be determined, with the ex-dividend date set for 2024-03-28. 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 Screen Holdings Co Ltd's dividend performance and assess its sustainability.
Understanding Screen Holdings Co Ltd's Business
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Screen Holdings Co Ltd operates in the Japanese semiconductor industry. The majority of its revenue is derived from the sale of semiconductor manufacturing equipment, which is part of its Semiconductor Equipment segment. Its other segments include Graphics and Precision Solutions, Fine Tech Solutions and Others. The Graphics segment is concerned with the sale of printing and printed circuit board related machinery. The Fine Tech Solutions (FT) segment provides flat panel display (FPD) manufacturing equipment and the Others segment is involved in the development and sale of software products. The company caters to the global market, with emphasis on the Asia and Oceania region.
Screen Holdings Co Ltd's Dividend Track Record
Screen Holdings Co Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dividend Yield and Growth Insights
As of today, Screen Holdings Co Ltd currently has a 12-month trailing dividend yield of 1.50% and a 12-month forward dividend yield of 2.21%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Screen Holdings Co Ltd's annual dividend growth rate was 130.00%. Extended to a five-year horizon, this rate decreased to 33.40% per year. Based on Screen Holdings Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Screen Holdings Co Ltd stock as of today is approximately 6.34%.
Evaluating Dividend Sustainability
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 2023-12-31, Screen Holdings Co Ltd's dividend payout ratio is 0.43.
Screen Holdings Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Screen Holdings Co Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Prospects for Growth and Dividend Continuity
To ensure the sustainability of dividends, a company must have robust growth metrics. Screen Holdings Co Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is favorable relative to its competitors.
Revenue is the lifeblood of any company, and Screen Holdings Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Screen Holdings Co Ltd's revenue has increased by approximately 13.20% per year on average, a rate that outperforms approximately 62.04% 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, Screen Holdings Co Ltd's earnings increased by approximately 98.20% per year on average, a rate that outperforms approximately 93.54% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.10%, which outperforms approximately 63.74% of global competitors, further underscores its growth potential.
Final Thoughts on Screen Holdings Co Ltd's Dividend Outlook
In conclusion, Screen Holdings Co Ltd's upcoming dividend, consistent payment history, and promising growth and profitability metrics paint a favorable picture for current and prospective investors. The company's strategic positioning within the semiconductor industry, coupled with its financial soundness and commitment to shareholder returns, suggests a strong potential for continued dividend sustainability and growth. Investors seeking to diversify their portfolios with a stock that offers both growth and income may find Screen Holdings Co Ltd an intriguing option. For those interested in exploring other high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover stocks that meet their investment criteria.
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.
