Unveiling the Dividend Performance of Kulicke & Soffa Industries Inc (KLIC)
A Comprehensive Analysis of KLIC's Dividend History, Yield, Growth, and Sustainability
Kulicke & Soffa Industries Inc (NASDAQ:KLIC) recently announced a dividend of $0.19 per share, payable on 2023-10-10, with the ex-dividend date set for 2023-09-20. 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 Kulicke & Soffa Industries Inc's dividend performance and assess its sustainability.
What Does Kulicke & Soffa Industries Inc Do?
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Kulicke & Soffa Industries Inc is a United States-based company that is principally engaged in designing, manufacturing, and selling capital equipment and expendable tools that are used for assembling semiconductor devices. The company operates through two core segments: Capital equipment, which produces and sells a series of ball bonders, wafer-level bonders, wedge bonders, APS which produces and offers various expendable tools designed for multiple semiconductor packaging applications. The Capital equipment segment contributes the majority of total revenue. The company generates the majority of its total revenue from the overseas market, mainly in the Asia-Pacific region.
A Glimpse at Kulicke & Soffa Industries Inc's Dividend History
Kulicke & Soffa Industries Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kulicke & Soffa Industries Inc's Dividend Yield and Growth
As of today, Kulicke & Soffa Industries Inc currently has a 12-month trailing dividend yield of 1.54% and a 12-month forward dividend yield of 1.58%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Kulicke & Soffa Industries Inc's annual dividend growth rate was 12.30%. Based on Kulicke & Soffa Industries Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Kulicke & Soffa Industries Inc stock as of today is approximately 1.54%.
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, Kulicke & Soffa Industries Inc's dividend payout ratio is 0.43.
Kulicke & Soffa Industries Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kulicke & Soffa Industries Inc's profitability 9 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.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kulicke & Soffa Industries Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Kulicke & Soffa Industries Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kulicke & Soffa Industries Inc's revenue has increased by approximately 44.20% per year on average, a rate that outperforms approximately 92.65% 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, Kulicke & Soffa Industries Inc's earnings increased by approximately 240.20% per year on average, a rate that outperforms approximately 98.28% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 51.10%, outperforms approximately 88.04% of global competitors.
Next Steps
In conclusion, despite the challenges in the global market, Kulicke & Soffa Industries Inc has demonstrated a robust dividend payment history, a promising growth rate, and a sustainable payout ratio. Combined with its impressive profitability and growth metrics, the company presents a compelling case for dividend-focused investors. However, as with all investments, it's crucial to conduct thorough research and consider the company's overall financial health before making a decision.
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This article first appeared on GuruFocus.
