Unveiling the Dividend Performance of Mitsui & Co Ltd (MITSF)
An in-depth analysis of the company's dividend history, growth, and sustainability
Mitsui & Co Ltd(MITSF) recently announced a dividend of $75 per share, payable on a yet-to-be-determined date, with the ex-dividend date set for 2023-09-28. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Mitsui & Co Ltds dividend performance and assess its sustainability.
Understanding Mitsui & Co Ltd's Business Model
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Mitsui & Co Ltd is a diversified trading company with a broad spectrum of business activities spanning sectors such as iron and steel, mineral and metal resources, machinery and infrastructure, chemicals, energy, lifestyle, innovation, and corporate development. The company also engages in the development of natural resources and holds minority interests in numerous upstream resource projects globally.
Tracing Mitsui & Co Ltd's Dividend History
Mitsui & Co Ltd has demonstrated a consistent dividend payment record since 2007, with dividends currently distributed bi-annually. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Assessing Mitsui & Co Ltd's Dividend Yield and Growth
At present, Mitsui & Co Ltd boasts a 12-month trailing dividend yield of 2.68% and a 12-month forward dividend yield of 2.92%, indicating an anticipation of increased dividend payments over the next 12 months.
Over the past three years, Mitsui & Co Ltd's annual dividend growth rate was 20.50%. However, this rate decreased to 13.00% per year when extended to a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at 9.20%. Based on these figures, the 5-year yield on cost of Mitsui & Co Ltd stock as of today is approximately 4.94%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio offers insights into the portion of earnings that Mitsui & Co Ltd 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, Mitsui & Co Ltd's dividend payout ratio is 0.20.
The company's profitability rank of 7 out of 10 suggests good profitability prospects. Notably, the company has reported net profit in 9 years out of the past 10 years.
Peering into Mitsui & Co Ltd's Growth Metrics
Mitsui & Co Ltd's growth rank of 7 out of 10 suggests a positive growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicate a robust revenue model, with an average increase of approximately 23.10% per year. This rate outperforms approximately 84.33% 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, Mitsui & Co Ltd's earnings increased by approximately 47.20% per year on average, a rate that outperforms approximately 78.02% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 25.70% also outperforms approximately 77.12% of global competitors.
Concluding Remarks
In conclusion, Mitsui & Co Ltd demonstrates a promising outlook in terms of its dividend payments, growth rate, payout ratio, profitability, and growth metrics. The company's consistent dividend payment record, robust growth metrics, and strong profitability rank underscore its potential to sustain and possibly increase its dividend payments in the future. However, as with any investment, investors should conduct thorough research and consider various factors before making a decision.
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This article first appeared on GuruFocus.
