Exploring the Dividend History, Yield, Growth, and Sustainability of Qube Holdings Ltd (QUBHF, Financial)
Qube Holdings Ltd(QUBHF) recently announced a dividend of $0.04 per share, payable on 2023-10-17, with the ex-dividend date set for 2023-09-18. 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 Qube Holdings Ltd's dividend performance and assess its sustainability.
A Brief Introduction to Qube Holdings Ltd
Qube Holdings Ltd operates through three main divisions: operating; property; and Patrick. The operating division undertakes a variety of services like road/rail transportation of containers to and from port, operation of container parks, customs/quarantine services, warehousing, intermodal terminals, international freight forwarding, domestic stevedoring, and bulk transport. Patrick is the container terminals business acquired from Asciano, and the property division includes tactical land holdings in Sydney.
Decoding Qube Holdings Ltd's Dividend History
Qube Holdings Ltd has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a bi-annually basis. The company has consistently increased its dividend each year, earning it the status of a dividend king, a title given to companies that have increased their dividend each year for at least the past 2023 years.
Understanding Qube Holdings Ltd's Dividend Yield and Growth
As of today, Qube Holdings Ltd currently has a 12-month trailing dividend yield of 2.34% and a 12-month forward dividend yield of 2.85%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Qube Holdings Ltd's annual dividend growth rate was 7.60%. This rate decreased to 5.00% per year when extended to a five-year horizon. Over the past decade, Qube Holdings Ltd's annual dividends per share growth rate stands at 3.80%.
Evaluating 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. As of 2023-06-30, Qube Holdings Ltd's dividend payout ratio is 0.71, suggesting that the company's dividend may not be sustainable.
Qube Holdings Ltd's profitability rank of 7 out of 10 as of 2023-06-30, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Assessing Future Prospects: Growth Metrics
Qube Holdings Ltd's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 13.90%, outperforming approximately 70.47% of global competitors.
Qube Holdings Ltd'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, Qube Holdings Ltd's earnings increased by approximately 23.90% per year on average, outperforming approximately 61.88% of global competitors.
Conclusion
While Qube Holdings Ltd has a commendable dividend history and growth, its payout ratio suggests potential sustainability issues. However, the company's strong profitability and growth metrics indicate a promising future. Investors should closely monitor these factors to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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