Unpacking Empire Co Ltd's Upcoming Dividend and Historical Performance
Empire Co Ltd (EMLAF, Financial) recently announced a dividend of $0.18 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-12. 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 Empire Co Ltd's dividend performance and assess its sustainability.
What Does Empire Co Ltd Do?
Empire Co Ltd's key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiary Sobeys and represents nearly all of the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.
A Glimpse at Empire Co Ltd's Dividend History
Empire Co Ltd has maintained a consistent dividend payment record since 2004, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2004, earning it the status of a dividend achiever, a distinction awarded to companies that have increased their dividend annually for at least the past 20 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Empire Co Ltd's Dividend Yield and Growth
As of today, Empire Co Ltd currently has a 12-month trailing dividend yield of 1.96% and a 12-month forward dividend yield of 2.06%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, Empire Co Ltd's annual dividend growth rate was 11.20%, which decreased to 9.80% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at 6.90%. Based on the dividend yield and five-year growth rate, the 5-year yield on cost of Empire Co Ltd stock as of today is approximately 3.13%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of Empire Co Ltd's dividend, it is essential to evaluate the company's payout ratio. The dividend payout ratio of 0.23 as of 2023-10-31 suggests that a significant portion of earnings is retained, providing funds for future growth and unexpected downturns. Furthermore, Empire Co Ltd's profitability rank of 7 out of 10 indicates good profitability prospects, with the company reporting net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Empire Co Ltd's growth rank of 7 out of 10 suggests a good growth trajectory relative to competitors. The company's revenue per share and 3-year revenue growth rate of approximately 6.20% per year outperforms about 55.63% of global competitors. The 3-year EPS growth rate of 7.80% per year outperforms about 40% of global competitors. Lastly, the 5-year EBITDA growth rate of 36.10% outperforms about 90.17% of global competitors.
Concluding Insights on Empire Co Ltd's Dividend Outlook
In summary, Empire Co Ltd's consistent dividend growth, reasonable payout ratio, solid profitability, and robust growth metrics paint a promising picture for the company's dividend sustainability. Investors considering Empire Co Ltd for its dividend potential should find these indicators reassuring. With the upcoming dividend payment on the horizon, the company continues to demonstrate its commitment to rewarding shareholders. Will Empire Co Ltd maintain its dividend achiever status in the years to come? That remains an intriguing question for investors to ponder as they assess the company's long-term value. For further dividend stock analysis, GuruFocus Premium users can utilize 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.
