Deep Dive into the Dividend Performance and Sustainability of National Research Corp
National Research Corp (NRC, Financial) recently announced a dividend of $0.12 per share, payable on 2023-10-13, with the ex-dividend date set for 2023-09-28. As investors anticipate this upcoming payment, the company's dividend history, yield, and growth rates come into focus. Using the data from GuruFocus, we delve into National Research Corp's dividend performance and assess its sustainability.
Company Overview: National Research Corp
Based in the United States, National Research Corp is a leading provider of analytics and insights that facilitate the measurement and improvement of patient and employee experiences. The company offers enterprise-level solutions through its Voice of the Customer platform, The Governance Institute, and legacy Experience solutions. Its primary market is the United States, from where it derives a significant portion of its revenue.
A Look at National Research Corp's Dividend History
Since 2014, National Research Corp has maintained a consistent dividend payment record, with dividends currently distributed on a quarterly basis. The annual Dividends Per Share chart below shows the company's historical trends.
Understanding National Research Corp's Dividend Yield and Growth
As of today, National Research Corp's 12-month trailing dividend yield stands at 1.29%, with a 12-month forward dividend yield of 1.03%, suggesting a potential decrease in dividend payments over the next 12 months.
In the past three years, National Research Corp's annual dividend growth rate was 2.50%, which increased to 4.60% per year over a five-year horizon. Given this yield and growth rate, the 5-year yield on cost of National Research Corp stock stands at approximately 1.62% today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio of National Research Corp, standing at 0.51 as of 2023-06-30, 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.
With a profitability rank of 9 out of 10 as of 2023-06-30, National Research Corp demonstrates good profitability prospects. The company has reported positive net income each year over the past decade, further solidifying its high profitability.
Future Prospects: Growth Metrics
National Research Corp's growth rank of 9 out of 10 suggests a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 6.60%.
The company's 3-year EPS growth rate showcases its ability to grow earnings, a crucial factor for sustaining dividends in the long run. Over the past three years, National Research Corp's earnings have increased by approximately 0.30% per year on average.
The company's 5-year EBITDA growth rate stands at 17.40%, indicating the company's potential to generate earnings before interest, taxes, depreciation, and amortization.
Concluding Remarks
In conclusion, National Research Corp has demonstrated a consistent dividend payment record, a modest dividend growth rate, and a sustainable payout ratio. Coupled with its high profitability and promising growth metrics, the company presents a compelling case for dividend-focused investors. However, it's crucial for investors to continue monitoring these metrics to ensure the sustainability of future dividends.
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