Understanding the Dividend Prospects of Armanino Foods of Distinction Inc
Armanino Foods of Distinction Inc (AMNF, Financial) recently announced a dividend of $0.03 per share, payable on 2024-01-26, with the ex-dividend date set for 2024-01-05. 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 Armanino Foods of Distinction Inc's dividend performance and assess its sustainability.
What Does Armanino Foods of Distinction Inc Do?
Armanino Foods of Distinction Inc is engaged in the production and marketing of upscale food products, including primarily frozen pesto sauces, frozen pasta products, cooked and frozen meat, and poultry products. Its products are marketed through a network of food brokers and sold to retail, foodservice, club-type stores, and industrial accounts.
A Glimpse at Armanino Foods of Distinction Inc's Dividend History
Armanino Foods of Distinction Inc has maintained a consistent dividend payment record since 2000. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Armanino Foods of Distinction Inc's Dividend Yield and Growth
As of today, Armanino Foods of Distinction Inc currently has a 12-month trailing dividend yield of 2.70% and a 12-month forward dividend yield of 2.77%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Armanino Foods of Distinction Inc's annual dividend growth rate was 5.30%. Extended to a five-year horizon, this rate decreased to 4.50% per year. And over the past decade, Armanino Foods of Distinction Inc's annual dividends per share growth rate stands at 9.40%.
Based on Armanino Foods of Distinction Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Armanino Foods of Distinction Inc stock as of today is approximately 3.36%.
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, Armanino Foods of Distinction Inc's dividend payout ratio is 0.54.
Armanino Foods of Distinction Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Armanino Foods of Distinction Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Armanino Foods of Distinction Inc'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 Armanino Foods of Distinction Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Armanino Foods of Distinction Inc's revenue has increased by approximately 1.60% per year on average, a rate that underperforms than approximately 68.79% 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, Armanino Foods of Distinction Inc's earnings increased by approximately -2.80% per year on average, a rate that underperforms than approximately 62.13% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -3.30%, which underperforms than approximately 70.85% of global competitors.
Next Steps
In conclusion, while Armanino Foods of Distinction Inc has demonstrated a steady history of dividend payments and a respectable yield, the company's growth metrics present a mixed outlook. The dividend growth rate remains positive but shows signs of deceleration, and the payout ratio indicates a balance between dividend distribution and retained earnings for future investment. However, the underperformance in revenue, EPS, and EBITDA growth rates relative to peers could raise concerns about the long-term sustainability of such dividend payments. Investors should consider these factors in the context of their individual investment strategy and risk tolerance. For those seeking dividend investment opportunities, 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.
