TD Synnex Corp's Dividend Analysis
Delving into the Dividend Details of TD Synnex Corp
TD Synnex Corp (NYSE:SNX) recently announced a dividend of $0.4 per share, payable on 2024-01-26, with the ex-dividend date set for 2024-01-18. 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 TD Synnex Corp's dividend performance and assess its sustainability.
What Does TD Synnex Corp Do?
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TD Synnex Corp is a global distributor and solutions aggregator for the IT ecosystem. Its edge-to-cloud portfolio is anchored in some of the technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility, and everything as a service.
A Glimpse at TD Synnex Corp's Dividend History
TD Synnex Corp has maintained a consistent dividend payment record since 2014, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down TD Synnex Corp's Dividend Yield and Growth
As of today, TD Synnex Corp currently has a 12-month trailing dividend yield of 1.38% and a 12-month forward dividend yield of 1.57%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, TD Synnex Corp's annual dividend growth rate was -7.20%. Extended to a five-year horizon, this rate increased to -6.50% per year. Based on TD Synnex Corp's dividend yield and five-year growth rate, the 5-year yield on cost of TD Synnex Corp stock as of today is approximately 0.99%.
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, TD Synnex Corp's dividend payout ratio is 0.21.
TD Synnex Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks TD Synnex Corp's profitability 7 out of 10 as of 2023-11-30, suggesting good profitability prospects. The company has reported positive net income for each 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. TD Synnex 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 TD Synnex Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. TD Synnex Corp's revenue has increased by approximately 20.40% per year on average, a rate that outperforms approximately 85.96% 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, TD Synnex Corp's earnings increased by approximately 17.00% per year on average, a rate that outperforms approximately 55.08% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 4.90%, which outperforms approximately 36.77% of global competitors, is another indicator of its strong growth potential.
Next Steps
In conclusion, TD Synnex Corp's upcoming dividend payment, consistent dividend history, and a forward-looking yield suggest a commitment to shareholder returns. However, the negative dividend growth rate over the past few years raises questions about long-term growth sustainability. Still, the company's low payout ratio, strong profitability rank, and solid growth metrics provide reassurance about the potential for future dividend stability and growth. Investors considering TD Synnex Corp should weigh these factors carefully, keeping an eye on both the company's financial health and industry trends. For those seeking to expand their income-generating portfolio, 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.
