Unveiling the Dividend Landscape of Mitsubishi Heavy Industries Ltd
An In-depth Analysis of MHVYF's Dividend Performance and Sustainability
Mitsubishi Heavy Industries Ltd (MHVYF) recently announced a dividend of $80 per share, payable on 0000-00-00, with the ex-dividend date set for 2023-09-28. 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 Mitsubishi Heavy Industries Ltd's dividend performance and assess its sustainability.
Understanding Mitsubishi Heavy Industries Ltd's Business
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Mitsubishi Heavy Industries Ltd is engaged in the manufacturing and sale of ships, industrial machinery, and aircraft. The company operates in various segments including Energy, Plants and Infrastructure Systems, Logistics, Thermal and Drive Systems, and Aircraft, Defense, and Space. The Energy segment, which contributes the most revenue, handles clean gas, steam power systems, nuclear power systems, compressors, and marine machinery. The other segments deal with commercial ships, engineering, machine tools, machinery systems, material handling systems, engines, HVAC systems, automotive air-conditioners, and commercial and defense aircraft.
Tracing Mitsubishi Heavy Industries Ltd's Dividend History
Mitsubishi Heavy Industries Ltd has maintained a consistent dividend payment record since 2013, with dividends currently distributed bi-annually. The following chart shows the annual Dividends Per Share for tracking historical trends.
Dissecting Mitsubishi Heavy Industries Ltd's Dividend Yield and Growth
As of today, Mitsubishi Heavy Industries Ltd boasts a 12-month trailing dividend yield of 1.68% and a 12-month forward dividend yield of 2.14%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Mitsubishi Heavy Industries Ltd's annual dividend growth rate was -8.40%. However, this rate increased to -1.10% per year over a five-year horizon. Over the past decade, Mitsubishi Heavy Industries Ltd's annual dividends per share growth rate stands at 3.60%. Consequently, the 5-year yield on cost of Mitsubishi Heavy Industries Ltd stock as of today is approximately 1.59%.
Examining Dividend Sustainability: Payout Ratio and Profitability
Assessing the sustainability of the dividend requires an evaluation of 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, Mitsubishi Heavy Industries Ltd's dividend payout ratio is 0.30.
Furthermore, Mitsubishi Heavy Industries Ltd's profitability rank of 6 out of 10 as of 2023-06-30, suggests fair profitability. The company has reported net profit in 9 out of the past 10 years.
Assessing Future Prospects with Growth Metrics
Mitsubishi Heavy Industries Ltd's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, despite underperforming approximately 76.82% of global competitors. Additionally, Mitsubishi Heavy Industries Ltd's 3-year EPS growth rate underscores its capability to grow its earnings, a critical component for sustaining dividends in the long run. However, this rate underperforms approximately 64.63% of global competitors.
Concluding Remarks
In conclusion, Mitsubishi Heavy Industries Ltd's consistent dividend payments, reasonable growth rate, and fair profitability suggest a promising outlook for dividend investors. However, potential investors should also consider the company's payout ratio and growth metrics to ensure dividend sustainability in the long run.
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This article first appeared on GuruFocus.
