Value Line Inc's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Value Line Inc
Value Line Inc (NASDAQ:VALU) recently announced a dividend of $0.28 per share, payable on 2023-11-09, with the ex-dividend date set for 2023-10-27. 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 delve into Value Line Inc's dividend performance and assess its sustainability.
Introduction to Value Line Inc
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Value Line Inc is a U.S based company that produces investment periodicals based on underlying research. It also makes available copyright data, including a ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment is Publishing.
Value Line Inc's Dividend History
Value Line Inc has maintained a consistent dividend payment record since 1984, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2013, earning it the status of a dividend achiever, a title given to companies that have increased their dividend each year for at least the past 10 years.
Value Line Inc's Dividend Yield and Growth
As of today, Value Line Inc currently has a 12-month trailing dividend yield of 2.89% and a 12-month forward dividend yield of 3.09%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Value Line Inc's annual dividend growth rate was 8.30%. Extended to a five-year horizon, this rate decreased to 6.70% per year. And over the past decade, Value Line Inc's annual dividends per share growth rate stands at 5.60%.
Based on Value Line Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Value Line Inc stock as of today is approximately 4.00%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a company's dividend can be assessed through its payout ratio. The dividend payout ratio indicates the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-07-31, Value Line Inc's dividend payout ratio is 0.54.
Value Line Inc's profitability rank, as of 2023-07-31, is 7 out of 10, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics and Future Outlook
For a company to sustain its dividends, robust growth metrics are crucial. Value Line 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 Value Line Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Value Line Inc's revenue has increased by approximately 0.20% per year on average, a rate that underperforms approximately 65.2% 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, Value Line Inc's earnings increased by approximately 7.20% per year on average, a rate that underperforms approximately 56.81% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 11.10% underperforms approximately 51.77% of global competitors.
Concluding Remarks
In conclusion, Value Line Inc's consistent dividend payments, respectable growth rate, manageable payout ratio, and notable profitability indicate a sustainable dividend. However, the company's growth metrics, including revenue per share, 3-year EPS growth rate, and 5-year EBITDA growth rate, suggest that there may be room for improvement. Investors should continue to monitor these aspects to make informed decisions regarding Value Line Inc's dividends.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
