Seanergy Maritime Holdings Corp's Dividend Analysis
Insights into Seanergy Maritime Holdings Corp's Upcoming Dividend Payment
Seanergy Maritime Holdings Corp (NASDAQ:SHIP) recently announced a dividend of $0.08 per share, payable on 2024-04-10, with the ex-dividend date set for 2024-03-22. 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 Seanergy Maritime Holdings Corp's dividend performance and assess its sustainability.
What Does Seanergy Maritime Holdings Corp Do?
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Seanergy Maritime Holdings Corp is an international shipping company that provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. It generates a majority of its revenue from the vessels. The company fleet of vessels includes Fellowship, Championship, Partnership, Knightship, Lordship, Gloriuship, Leadership, Geniuship, Premiership, and Squireship among others.
A Glimpse at Seanergy Maritime Holdings Corp's Dividend History
Seanergy Maritime Holdings Corp has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Seanergy Maritime Holdings Corp's Dividend Yield and Growth
As of today, Seanergy Maritime Holdings Corp currently has a 12-month trailing dividend yield of 1.09% and a 12-month forward dividend yield of 1.09%. This suggests an expectation of same dividend payments over the next 12 months.
Seanergy Maritime Holdings Corp's dividend yield of 1.09% is near a 10-year low and underperforms than 82.71% of global competitors in the Transportation industry, suggesting that the company's dividend yield may not be a compelling proposition for income investors.
Based on Seanergy Maritime Holdings Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Seanergy Maritime Holdings Corp stock as of today is approximately 1.09%.
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, Seanergy Maritime Holdings Corp's dividend payout ratio is 0.63.
Seanergy Maritime Holdings Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Seanergy Maritime Holdings Corp's profitability 4 out of 10 as of 2023-09-30, suggesting the dividend may not be sustainable. The company has reported net profit in 4 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. Seanergy Maritime Holdings Corp's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. Revenue is the lifeblood of any company, and Seanergy Maritime Holdings Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Seanergy Maritime Holdings Corp's revenue has increased by approximately -80.10% per year on average, a rate that underperforms than approximately 99.34% of global competitors.
Concluding Thoughts on Seanergy Maritime Holdings Corp's Dividend Profile
Considering Seanergy Maritime Holdings Corp's consistent dividend payments, current yield, and payout ratio, alongside its profitability and growth rankings, investors are presented with a nuanced picture. While the company has shown commitment to returning value to shareholders through dividends, the sustainability of these payments is not guaranteed given the underwhelming growth and profitability metrics. Value investors, particularly those with a focus on dividend income, should closely monitor Seanergy Maritime Holdings Corp's financial health and industry trends to make informed decisions. Can Seanergy Maritime Holdings Corp navigate the challenging waters of the shipping industry to maintain its dividend payments? Only time will tell.
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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.
