TTEC Holdings Inc's Dividend Analysis
A Comprehensive Review of TTEC Holdings Inc's Dividend Performance and Sustainability
TTEC Holdings Inc(NASDAQ:TTEC) recently announced a dividend of $0.52 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. 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 TTEC Holdings Inc's dividend performance and assess its sustainability.
What Does TTEC Holdings Inc Do?
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TTEC Holdings Inc provides customer engagement management tools and services. Operating through TTEC Digital and TTEC Engage, the company assists clients in developing customer engagement strategies and optimizing customer experience. Majority of the company's revenue comes from TTEC Engage, with most sales derived from the United States and Canada, followed by the Philippines, Asia-Pacific, and India.
A Glimpse at TTEC Holdings Inc's Dividend History
Since 2015, TTEC Holdings Inc has maintained a consistent dividend payment record, distributing dividends bi-annually. The chart below shows the company's annual Dividends Per Share for tracking historical trends.
Breaking Down TTEC Holdings Inc's Dividend Yield and Growth
As of today, TTEC Holdings Inc currently has a 12-month trailing dividend yield of 4.41% and a 12-month forward dividend yield of 4.41%. This suggests an expectation of consistent dividend payments over the next 12 months.
Over the past three years, TTEC Holdings Inc's annual dividend growth rate was 18.10%. When extended to a five-year horizon, this rate decreases slightly to 17.10% per year. This gives TTEC Holdings Inc a 5-year yield on cost of approximately 9.71%.
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 2023-06-30, TTEC Holdings Inc's dividend payout ratio is 0.76, which may suggest that the company's dividend may not be sustainable.
TTEC Holdings Inc's profitability rank of 9 out of 10, suggests 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
TTEC Holdings Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. TTEC Holdings Inc's revenue has increased by approximately 13.70% per year on average, a rate that outperforms approximately 62.85% 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, TTEC Holdings Inc's earnings increased by approximately 9.70% per year on average, a rate that outperforms approximately 49.47% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 65.00% outperforms approximately 96.81% of global competitors.
Conclusion
Given TTEC Holdings Inc's consistent dividend payments, impressive dividend growth rate, and robust profitability, the company presents a compelling case for dividend investors. However, the high payout ratio suggests potential challenges in sustaining the dividend in the long run. Therefore, investors should closely monitor the company's earnings and payout ratio. Despite these concerns, TTEC Holdings Inc's strong growth metrics indicate a promising future, potentially offsetting any short-term dividend sustainability issues.
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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.
