Sensata Technologies Holding PLC's Dividend Analysis
A Comprehensive Review of Sensata Technologies Holding PLC's Dividend Performance and Sustainability
Sensata Technologies Holding PLC (NYSE:ST) recently announced a dividend of $0.12 per share, payable on 2023-11-22, with the ex-dividend date set for 2023-11-07. 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 delve into Sensata Technologies Holding PLC's dividend performance and assess its sustainability.
What Does Sensata Technologies Holding PLC Do?
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Sensata Technologies is a global supplier of sensors for transportation and industrial applications. Sensata sells a variety of pressure, temperature, force, and position sensors into the automotive, heavy vehicle, industrial, heating, ventilation, and cooling, and aerospace markets. The majority of the firm's revenue comes from the automotive market, where it focuses on bumper-in applications.
A Glimpse at Sensata Technologies Holding PLC's Dividend History
Sensata Technologies Holding PLC has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis.
Sensata Technologies Holding PLC has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2023 years.
Breaking Down Sensata Technologies Holding PLC's Dividend Yield and Growth
As of today, Sensata Technologies Holding PLC currently has a 12-month trailing dividend yield of 1.42% and a 12-month forward dividend yield of 1.48%. This suggests an expectation of increased dividend payments over the next 12 months.
Sensata Technologies Holding PLC's dividend yield of 1.42% is near a 10-year high and outperforms than 31.57 of global competitors in the Hardware industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Sensata Technologies Holding PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Sensata Technologies Holding PLC stock as of today is approximately 1.42%.
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, Sensata Technologies Holding PLC's dividend payout ratio is 0.23.
Sensata Technologies Holding PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sensata Technologies Holding PLC's profitability 8 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. Sensata Technologies Holding PLC's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Sensata Technologies Holding PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sensata Technologies Holding PLC's revenue has increased by approximately 6.60% per year on average, a rate that outperforms than approximately 56.82% 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, Sensata Technologies Holding PLC's earnings increased by approximately -1.50% per year on average, a rate that outperforms than approximately 29.57% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -0.70%, which outperforms than approximately 26.7% of global competitors.
Next Steps
Given Sensata Technologies Holding PLC's consistent dividend payments, impressive dividend growth rate, sustainable payout ratio, high profitability, and robust growth metrics, the company presents a promising investment opportunity for those seeking steady income. However, as with any investment, potential investors should conduct thorough research and consider the company's overall financial health 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.
