Unveiling Wabash National Corp's Dividend Dynamics: A Comprehensive Analysis
Delving into Wabash National Corp's dividend history, yield, growth, and sustainability
Wabash National Corp (NYSE:WNC) recently announced a dividend of $0.08 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-04. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this article provides an in-depth analysis of Wabash National Corp's dividend performance and assesses its sustainability.
About Wabash National Corp
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Wabash National Corp is a leading innovator of connected solutions for the transportation, logistics, and distribution industries. The company's mission is to empower customers with breakthrough ideas and solutions that facilitate the movement of goods from the first to the final mile. It designs and manufactures a diverse array of products, including dry freight and refrigerated trailers, platform trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food-grade processing equipment.
Wabash National Corp's Dividend History
Since 2017, Wabash National Corp has maintained a consistent dividend payment record, with dividends currently distributed on a quarterly basis. The chart below shows the annual Dividends Per Share to track historical trends.
Wabash National Corp's Dividend Yield and Growth
As of today, Wabash National Corp has a 12-month trailing dividend yield of 1.56% and a 12-month forward dividend yield of 1.56%. This suggests an expectation of consistent dividend payments over the next 12 months. Over a five-year horizon, this rate increased to 3.70% per year. Based on Wabash National Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Wabash National Corp stock as of today is approximately 1.87%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To determine the sustainability of the dividend, it's essential 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, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, Wabash National Corp's dividend payout ratio is 0.08. Wabash National Corp's profitability rank of 8 out of 10 suggests good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Future Outlook: Growth Metrics
For the sustainability of dividends, a company must have robust growth metrics. Wabash National Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is strong relative to its 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, Wabash National Corp's earnings increased by approximately 11.60% per year on average, a rate that outperforms approximately 45.91% of global competitors.
Conclusion
Wabash National Corp's consistent dividend payments, moderate growth rate, low payout ratio, and strong profitability and growth metrics suggest that its dividends are sustainable in the long term. However, investors should always consider the overall financial health of the company and the market conditions before investing. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
