Unveiling the Dividend Performance of Aecon Group Inc
An In-depth Analysis of Aecon Group Inc's Dividend History, Yield, and Sustainability
Aecon Group Inc (AEGXF) recently announced a dividend of $0.19 per share, payable on 2023-10-03, with the ex-dividend date set for 2023-09-21. 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 Aecon Group Inc's dividend performance and assess its sustainability.
Understanding Aecon Group Inc
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Aecon Group Inc is a Canada-based company that operates in two segments: Construction and Concessions. The Construction segment includes various aspects of the construction of public and private infrastructure projects, mainly in the transportation sector. Its concessions segment is engaged in the development, financing, construction, and operation of infrastructure projects. The company generates the majority of its revenue from the Construction segment.
A Brief Look at Aecon Group Inc's Dividend History
Aecon Group Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis. The company has increased its dividend each year since 2007, earning the title of a dividend achiever, a distinction given to companies that have increased their dividend each year for at least the past 16 years.
Analyzing Aecon Group Inc's Dividend Yield and Growth
Currently, Aecon Group Inc has a 12-month trailing dividend yield of 6.50% and a 12-month forward dividend yield of 6.65%. This indicates an expectation of increased dividend payments over the next 12 months.
Over the past three years, Aecon Group Inc's annual dividend growth rate was 8.50%. Extended to a five-year horizon, this rate increased to 9.20% per year. Over the past decade, Aecon Group Inc's annual dividends per share growth rate stands at an impressive 10.10%.
Assessing Dividend Sustainability: 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, Aecon Group Inc's dividend payout ratio is 0.65.
Aecon Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Aecon Group Inc's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Future Prospects: Aecon Group Inc's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Aecon Group Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Aecon Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Aecon Group Inc's revenue has increased by approximately 8.10% per year on average, a rate that outperforms approximately 65.44% 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, Aecon Group Inc's earnings increased by approximately -25.10% per year on average, a rate that outperforms approximately 16.38% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -0.90%, which outperforms approximately 36.64% of global competitors.
Concluding Remarks
In conclusion, Aecon Group Inc's consistent dividend payments, impressive growth rate, reasonable payout ratio, and strong profitability and growth metrics indicate a promising outlook for its dividend sustainability. However, investors should continue to monitor these factors to ensure that the company can maintain its dividend performance in the future.
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This article first appeared on GuruFocus.
