Tiger Brands Ltd's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
Tiger Brands Ltd (TBLMF) recently announced a dividend of $6.71 per share, payable on 2024-01-22, with the ex-dividend date set for 2024-01-17. 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 Tiger Brands Ltd's dividend performance and assess its sustainability.
What Does Tiger Brands Ltd Do?
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Tiger Brands Ltd is an African manufacturer of branded food, home-care, and personal-care products. Present in 22 African countries, the company also has global distribution in the rest of the world: Germany, the United Kingdom, Sweden, Ireland, Canada, Sweden, the Philippines, Singapore, and Taiwan, among others. The product offering includes perishables, personal-care products, home-care products, snacks, baby care, beverages, grains, groceries, and out-of-home meals. The company reports under the following segments: grains, consumer brands, Home, Personal Care and Baby (HPCB), and export and international. The Grains segment is the largest segment. Some of the best-known brands are Oros, Hall's, Rose's, Ace, Albany, Purity, Ice Cap, Hugo's, and All Good.
A Glimpse at Tiger Brands Ltd's Dividend History
Tiger Brands Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Tiger Brands Ltd's Dividend Yield and Growth
As of today, Tiger Brands Ltd currently has a 12-month trailing dividend yield of 5.05% and a 12-month forward dividend yield of 4.82%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Tiger Brands Ltd's annual dividend growth rate was 30.90%. Extended to a five-year horizon, this rate decreased to -1.40% per year. And over the past decade, Tiger Brands Ltd's annual dividends per share growth rate stands at -1.50%. Based on Tiger Brands Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Tiger Brands Ltd stock as of today is approximately 4.71%.
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, Tiger Brands Ltd's dividend payout ratio is 0.57.
Tiger Brands Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Tiger Brands Ltd'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. Tiger Brands Ltd'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 Tiger Brands Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Tiger Brands Ltd's revenue has increased by approximately 9.70% per year on average, a rate that outperforms approximately 60.58% 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, Tiger Brands Ltd's earnings increased by approximately 12.90% per year on average, a rate that outperforms approximately 56.68% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 1.20%, which outperforms approximately 38.56% of global competitors.
Next Steps
Reflecting on Tiger Brands Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors can gauge the company's ability to maintain and potentially increase its dividend in the future. While historical trends provide a measure of stability, the current growth and profitability ranks offer a positive outlook for the sustainability of dividends. Value investors considering Tiger Brands Ltd should weigh these factors in their investment decisions, and may find Tiger Brands Ltd an appealing option for their portfolios. 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.
