Travis Perkins PLC (TPRKY): A Detailed Analysis of Its Dividend Performance
Exploring the Dividend History, Yield, Growth, and Sustainability of Travis Perkins PLC (TPRKY)
Travis Perkins PLC (TPRKY) recently announced a dividend of $0.15 per share, payable on 2023-11-20, with the ex-dividend date set for 2023-10-05. 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 deep dive into Travis Perkins PLCs dividend performance and assess its sustainability.
About Travis Perkins PLC
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Travis Perkins PLC makes and sells products to the construction and home improvement industries in the United Kingdom. The company organizes itself in two segments: merchanting, which serves large trade customers with specialized needs; Toolstation, which provides power tools, hand tools, and electronic equipment to small trade builders and individuals. The largest portion of revenue comes from the merchanting segment, and the majority of company sales are made by delivery.
Travis Perkins PLC's Dividend History
Travis Perkins PLC has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Travis Perkins PLC's Dividend Yield and Growth
As of today, Travis Perkins PLC currently has a 12-month trailing dividend yield of 4.77% and a 12-month forward dividend yield of 4.83%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Travis Perkins PLC's annual dividend growth rate was -9.90%.
Based on Travis Perkins PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Travis Perkins PLC stock as of today is approximately 4.77%.
Payout Ratio and Profitability: Assessing Dividend Sustainability
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 2023-06-30, Travis Perkins PLC's dividend payout ratio is 0.58.
Travis Perkins PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Travis Perkins PLC's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Travis Perkins PLC's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Travis Perkins PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Travis Perkins PLC's revenue has increased by approximately -9.40% per year on average, a rate that underperforms than approximately 78.34% 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, Travis Perkins PLC's earnings increased by approximately 18.10% per year on average, a rate that underperforms than approximately 34.39% of global competitors.
Concluding Remarks
Based on the analysis, Travis Perkins PLC has demonstrated a stable dividend payment record, a fair growth outlook, and a reasonable payout ratio. However, the company's dividend growth rate and revenue growth rate have been less than stellar in recent years. While the current dividend yield is attractive, investors should monitor the company's future earnings and revenue growth to ensure the sustainability of its dividends. As always, it is crucial to conduct thorough research and consider various factors before making investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
