World Kinect Corp's Dividend Analysis
Assessing the Sustainability and Growth of World Kinect Corp's Dividends
World Kinect Corp (NYSE:WKC) recently announced a dividend of $0.14 per share, payable on 2024-01-16, with the ex-dividend date set for 2023-12-15. 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 World Kinect Corps dividend performance and assess its sustainability.
What Does World Kinect Corp Do?
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World Kinect Corp is a global energy management company involved in providing supply fulfillment, energy procurement advisory services, and transaction and payment management solutions to commercial and industrial customers worldwide. It sells and delivers liquid fuels, natural gas, electricity, renewable energy, and other sustainability solutions.
A Glimpse at World Kinect Corp's Dividend History
World Kinect Corp has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a quarterly basis.
World Kinect Corp has increased its dividend each year since 1995. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 28 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down World Kinect Corp's Dividend Yield and Growth
As of today, World Kinect Corp currently has a 12-month trailing dividend yield of 2.53% and a 12-month forward dividend yield of 2.53%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, World Kinect Corp's annual dividend growth rate was 13.00%. Extended to a five-year horizon, this rate increased to 18.90% per year. And over the past decade, World Kinect Corp's annual dividends per share growth rate stands at an impressive 14.20%.
Based on World Kinect Corp's dividend yield and five-year growth rate, the 5-year yield on cost of World Kinect Corp stock as of today is approximately 6.01%.
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, World Kinect Corp's dividend payout ratio is 0.32.
World Kinect Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks World Kinect Corp's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. World Kinect Corp'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 World Kinect Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. World Kinect Corp's revenue has increased by approximately 19.40% per year on average, a rate that outperforms approximately 68.33% 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, World Kinect Corp's earnings increased by approximately -14.60% per year on average, a rate that outperforms approximately 17.19% of global competitors.
Concluding Thoughts on World Kinect Corp's Dividend Outlook
World Kinect Corp's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture of the company's financial health and its ability to maintain and potentially increase its dividends. The consistent history of dividend payments, coupled with a solid profitability rank and promising growth metrics, suggests that World Kinect Corp is positioned well to continue rewarding its shareholders. Investors should consider these factors in their overall assessment of World Kinect Corp as a potential component of their dividend investment strategy.
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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.
