Universal Logistics Holdings Inc's Dividend Analysis
Understanding the Dividend Prospects of Universal Logistics Holdings Inc
Universal Logistics Holdings Inc (NASDAQ:ULH) recently announced a dividend of $0.11 per share, payable on 2024-01-02, with the ex-dividend date set for 2023-12-01. 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 Universal Logistics Holdings Inc's dividend performance and assess its sustainability.
What Does Universal Logistics Holdings Inc Do?
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Universal Logistics Holdings Inc is an asset-light provider of customized transportation and logistics solutions throughout the United States, and in Mexico, Canada, and Colombia. It offers services such as truckload, brokerage, intermodal, dedicated, and value-added services. The company reports into four segments namely trucking, intermodal, company-managed brokerage, and contract logistics. The majority of the revenue is earned from the contract logistics segment.
A Glimpse at Universal Logistics Holdings Inc's Dividend History
Universal Logistics Holdings Inc has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Universal Logistics Holdings Inc's Dividend Yield and Growth
As of today, Universal Logistics Holdings Inc currently has a 12-month trailing dividend yield of 1.69% and a 12-month forward dividend yield of 1.69%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Universal Logistics Holdings Inc's annual dividend growth rate was -7.20%. Extended to a five-year horizon, this rate increased to 4.00% per year. Based on Universal Logistics Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Universal Logistics Holdings Inc stock as of today is approximately 2.06%.
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, Universal Logistics Holdings Inc's dividend payout ratio is 0.11.
Universal Logistics Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Universal Logistics Holdings Inc's profitability 8 out of 10 as of 2023-09-30, 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. Universal Logistics Holdings Inc'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 Universal Logistics Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Universal Logistics Holdings Inc's revenue has increased by approximately 12.20% per year on average, a rate that outperforms approximately 66.38% 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, Universal Logistics Holdings Inc's earnings increased by approximately 68.10% per year on average, a rate that outperforms approximately 83.66% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 36.10%, which outperforms approximately 84.4% of global competitors.
Next Steps
In conclusion, Universal Logistics Holdings Inc's upcoming dividend, consistent dividend history, and a moderate yield of 1.69% make it an attractive consideration for income-focused investors. The company's low payout ratio indicates a sustainable dividend policy, supported by a strong profitability rank. Furthermore, robust growth metrics provide confidence in the company's ability to maintain its dividend payments in the future. Given these factors, Universal Logistics Holdings Inc appears to be a solid candidate for value investors seeking dividend income. Will Universal Logistics Holdings Inc continue to provide a stable income stream for its shareholders? This is a question investors should consider in light of the company's financial health and industry position.
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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.
