Analysis of the Company's Dividend History, Yield, Growth, and Sustainability
NXP Semiconductors NV(NXPI, Financial) recently announced a dividend of $1.01 per share, payable on 2023-10-05, with the ex-dividend date set for 2023-09-12. 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 deep dive into NXP Semiconductors NVs dividend performance and assess its sustainability.
A Brief Overview of NXP Semiconductors NV
NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
Insights into NXP Semiconductors NV's Dividend History
NXP Semiconductors NV has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding NXP Semiconductors NV's Dividend Yield and Growth
As of today, NXP Semiconductors NV currently has a 12-month trailing dividend yield of 1.82% and a 12-month forward dividend yield of 2.00%. This suggests an expectation of increase dividend payments over the next 12 months. Over the past three years, NXP Semiconductors NV's annual dividend growth rate was 39.30%. Based on NXP Semiconductors NV's dividend yield and five-year growth rate, the 5-year yield on cost of NXP Semiconductors NV stock as of today is approximately 1.82%.
Assessing Dividend Sustainability: 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, NXP Semiconductors NV's dividend payout ratio is 0.35.
NXP Semiconductors NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NXP Semiconductors NV's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Evaluating Growth Metrics for Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. NXP Semiconductors NV'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 NXP Semiconductors NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. NXP Semiconductors NV's revenue has increased by approximately 17.20% per year on average, a rate that outperforms than approximately 63.5% 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, NXP Semiconductors NV's earnings increased by approximately 131.50% per year on average, a rate that outperforms than approximately 94.22% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 2.80%, which outperforms than approximately 20% of global competitors.
Conclusion
In conclusion, NXP Semiconductors NV has demonstrated a strong dividend performance backed by consistent payments, impressive growth rates, and a sustainable payout ratio. The company's robust profitability and growth metrics indicate a strong potential for future dividend growth and sustainability. These factors make NXP Semiconductors NV a compelling consideration for investors seeking dividend income.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
