Wabash National Corp's Dividend Analysis
Assessing the Sustainability and Prospects of WNC's Dividend Payments
Wabash National Corp (NYSE:WNC) recently announced a dividend of $0.08 per share, payable on 2024-01-25, with the ex-dividend date set for 2024-01-03. 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 look into Wabash National Corp's dividend performance and assess its sustainability.
What Does Wabash National Corp Do?
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Wabash National Corp operates as the innovation leader of connected solutions for the transportation, logistics, and distribution industries. The company's mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from the first to the final mile. It designs and manufactures a diverse range 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.
A Glimpse at Wabash National Corp's Dividend History
Wabash National Corp has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Wabash National Corp's Dividend Yield and Growth
As of today, Wabash National Corp currently has a 12-month trailing dividend yield of 1.25% and a 12-month forward dividend yield of 1.25%. This suggests an expectation of the same dividend payments over the next 12 months. Extended to 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 1.50%.
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 2023-09-30, Wabash National Corp's dividend payout ratio is 0.07.
Wabash National Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wabash National Corp's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure 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 good relative to its competitors.
Revenue is the lifeblood of any company, and Wabash National Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Wabash National Corp's revenue has increased by approximately 6.10% per year on average, a rate that underperforms approximately 50.74% 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, Wabash National Corp's earnings increased by approximately 11.80% per year on average, a rate that underperforms approximately 51.19% of global competitors.
Conclusion: Evaluating Wabash National Corp's Dividend Prospects
Considering Wabash National Corp's consistent dividend payments, modest dividend growth rate, low payout ratio, strong profitability, and growth metrics, the dividend's sustainability appears to be sound. However, with revenue and earnings growth rates that lag behind some global competitors, investors should keep an eye on the company's ability to maintain its competitive edge and continue delivering shareholder value. Will Wabash National Corp's strategic initiatives and industry innovations be enough to propel its financials and support a growing dividend in the years to come? For those looking to dive deeper into dividend investing, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
