An in-depth look at the dividend history, yield, and growth of Home Product Center PCL (HPCRF, Financial)
Home Product Center PCL (HPCRF) recently announced a dividend of $0.18 per share, payable on 2023-09-27, with the ex-dividend date set for 2023-09-12. As investors eagerly anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Home Product Center PCL's dividend performance and evaluate its sustainability.
Understanding Home Product Center PCL
Home Product Center PCL is a Thailand-based company engaged in the sale of home improvement products under the HomePro brand. As a One Stop Shopping Home Center, it offers construction, extension, and renovation services, as well as improvement of buildings, houses, and residences. The company operates in Thailand and Malaysia through its HomePro stores and subsidiaries, generating the majority of its revenue from Thailand. Its primary revenue stream comes from contracts with customers, specifically through the hard line product category, which includes tools, paint, home improvement, bathroom and sanitary ware, kitchen, home appliances, and electrical equipment.
Home Product Center PCL's Dividend History: A Snapshot
Home Product Center PCL has maintained a consistent dividend payment record since 2009, with dividends currently distributed bi-annually. The chart below shows the annual Dividends Per Share to track historical trends.
Unpacking Home Product Center PCL's Dividend Yield and Growth
Currently, Home Product Center PCL has a 12-month trailing dividend yield of 2.73% and a 12-month forward dividend yield of 2.62%, indicating an expected decrease in dividend payments over the next 12 months. However, over a five-year horizon, this rate increases to 3.30% per year. Over the past decade, the company's annual dividends per share growth rate has been an impressive 29.00%. Based on these metrics, the 5-year yield on cost of Home Product Center PCL stock as of today is approximately 3.21%.
The Sustainability of Dividends: Payout Ratio and Profitability
To determine the sustainability of the dividend, it's essential 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, Home Product Center PCL's dividend payout ratio is 0.78, which may suggest that the company's dividend may not be sustainable.
Home Product Center PCL's profitability rank of 8 out of 10 as of 2023-06-30 suggests good profitability prospects. The company has reported positive net income each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must have robust growth metrics. Home Product Center PCL's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Home Product Center PCL's revenue has increased by approximately 0.80% per year on average, a rate that underperforms approximately 59.37% of global competitors. Furthermore, the company's 5-year EBITDA growth rate of 2.50% underperforms approximately 61.49% of global competitors.
Concluding Thoughts
While Home Product Center PCL's dividend history and growth rate are impressive, investors should consider the sustainability of these dividends. Factors such as the company's payout ratio, profitability, and growth metrics play a crucial role in determining this. Investors must keep these aspects in mind when making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
