Unraveling the Dividend Saga of KP Tissue Inc (KPTSF)
An in-depth analysis of the company's dividend performance and sustainability
KP Tissue Inc (KPTSF) recently announced a dividend of $0.18 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-09-29. 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 KP Tissue Inc's dividend performance and assess its sustainability.
What Does KP Tissue Inc Do?
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KP Tissue Inc operates as a holding company. The firm produces, distributes, markets, and sells a range of disposable tissue products in North America. It offers bathroom and facial tissues, paper towels, and napkins, as well as disposable wiping products and washroom dispensing systems.
A Glimpse at KP Tissue Inc's Dividend History
KP Tissue Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down KP Tissue Inc's Dividend Yield and Growth
As of today, KP Tissue Inc currently has a 12-month trailing dividend yield of 7.13% and a 12-month forward dividend yield of 7.15%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on KP Tissue Inc's dividend yield and five-year growth rate, the 5-year yield on cost of KP Tissue Inc stock as of today is approximately 7.13%.
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, KP Tissue Inc's dividend payout ratio is 0.00.
KP Tissue Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks KP Tissue Inc's profitability 1 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 1 year out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. KP Tissue Inc's growth rank of 1 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
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, KP Tissue Inc's earnings increased by approximately -14.80% per year on average, a rate that outperforms approximately 25.22% of global competitors.
Next Steps
Given KP Tissue Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should exercise caution. The company's low profitability and growth ranks coupled with a low payout ratio suggest potential challenges in sustaining dividends. Investors should consider these factors while 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.
