Assessing the Upcoming Dividend and Historical Performance
BlueScope Steel Ltd (BLSFF, Financial) recently announced a dividend of $0.25 per share, payable on 2024-03-26, with the ex-dividend date set for 2024-02-23. 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 BlueScope Steel Ltd's dividend performance and assess its sustainability.
What Does BlueScope Steel Ltd Do?
BlueScope is an Australian-based steelmaking firm with five business units. The Australian Steel Products segment mainly specializes in branded coated and painted flat steel products, sold domestically. North Star is the group's U.S. mini-mill specializing in the production of hot rolled coil for U.S. construction and automotive sectors. Building Products Asia and North America operate across Southeast Asia, China, India, and the U.S. West Coast involved in metal-coating, painting, and roll-forming. New Zealand Steel and the Pacific Islands business produces flat and long steel products for New Zealand and building components for the Pacific Islands. The Buildings North America segment specializes in non-residential buildings, including materials manufacturing and support services.
A Glimpse at BlueScope Steel Ltd's Dividend History
BlueScope Steel Ltd has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down BlueScope Steel Ltd's Dividend Yield and Growth
As of today, BlueScope Steel Ltd currently has a 12-month trailing dividend yield of 2.16% and a 12-month forward dividend yield of 2.15%. This suggests an expectation of stable dividend payments over the next 12 months.
Over the past three years, BlueScope Steel Ltd's annual dividend growth rate was 52.90%. Extended to a five-year horizon, this rate decreased to 38.50% per year. Based on BlueScope Steel Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of BlueScope Steel Ltd stock as of today is approximately 11.01%.
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 2023-06-30, BlueScope Steel Ltd's dividend payout ratio is 0.23.
BlueScope Steel Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks BlueScope Steel Ltd's profitability 9 out of 10 as of 2023-06-30, 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. BlueScope Steel Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and BlueScope Steel Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. BlueScope Steel Ltd's revenue has increased by approximately 20.80% per year on average, a rate that outperforms approximately 77.7% 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, BlueScope Steel Ltd's earnings increased by approximately 76.30% per year on average, a rate that outperforms approximately 82.49% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 11.10%, which outperforms approximately 45.45% of global competitors.
Next Steps
In conclusion, BlueScope Steel Ltd's upcoming dividend, consistent historical payments, and robust growth rates paint a picture of a company committed to rewarding its shareholders. With a manageable payout ratio and strong profitability, the dividends appear sustainable. The growth metrics further reinforce the company's ability to maintain and potentially increase its dividends, making it an attractive option for value investors. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment opportunities.
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.
