Steelcase Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of Steelcase Inc
Steelcase Inc (NYSE:SCS) recently announced a dividend of $0.1 per share, payable on 2024-01-16, with the ex-dividend date set for 2024-01-03. 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 Steelcase Inc's dividend performance and assess its sustainability.
What Does Steelcase Inc Do?
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Steelcase Inc is a furniture company primarily based in the United States and has operations in Europe, the Middle East, and Africa. Steelcase markets its products primarily through a network of independent and company-owned dealers. The company operates through the Americas segment, the EMEA segment and the Other category. The Americas segment offers architecture, furniture and technology products is marketed to corporate, government, healthcare, education and retail customers, EMEA segment provides furniture systems, storage and seating solutions. Majority of revenue is generated from Americas segment.
A Glimpse at Steelcase Inc's Dividend History
Steelcase Inc has maintained a consistent dividend payment record since 1998. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Steelcase Inc's Dividend Yield and Growth
As of today, Steelcase Inc currently has a 12-month trailing dividend yield of 2.96% and a 12-month forward dividend yield of 2.96%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Steelcase Inc's annual dividend growth rate was -5.50%. Extended to a five-year horizon, this rate increased to -1.90% per year. And over the past decade, Steelcase Inc's annual dividends per share growth rate stands at 2.70%.
Based on Steelcase Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Steelcase Inc stock as of today is approximately 2.69%.
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 2023-11-30, Steelcase Inc's dividend payout ratio is 0.63.
Steelcase Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Steelcase Inc's profitability 7 out of 10 as of 2023-11-30, 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. Steelcase Inc'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 Steelcase Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Steelcase Inc's revenue has increased by approximately -3.30% per year on average, a rate that underperforms than approximately 80.53% 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, Steelcase Inc's earnings increased by approximately -38.10% per year on average, a rate that underperforms than approximately 91.89% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -37.50%, which underperforms than approximately 98.11% of global competitors.
Next Steps for Investors
In conclusion, while Steelcase Inc's dividend payment history is consistent, the company's recent dividend growth rate and payout ratio indicate a cautious outlook on its dividend sustainability. The profitability rank points to a solid earnings background, yet the growth metrics suggest challenges ahead. Investors should consider these factors when evaluating the potential for future dividend growth and the overall investment case for Steelcase Inc. For those seeking 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.
