A comprehensive analysis of Credit Corp Group Ltd's (CCGFF, Financial) dividend history, yield, growth, and sustainability
Credit Corp Group Ltd (CCGFF) recently announced a dividend of $0.47 per share, payable on 2023-09-29, 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 Credit Corp Group Ltd's dividend performance and assess its sustainability.
About Credit Corp Group Ltd
Credit Corp Group Ltd operates in the distressed consumer debt market. It acquires purchased debt ledgers, or PDLs, in Australia and is expanding this business globally by buying PDLs in the United States. These PDLs consist of unsecured debt that are at least six months in arrears and have already been through a collection process. Since 2012, Credit Corp Group Ltd has also diversified its business into providing consumer credit to customers who are unable to gain access to credit from primary sources such as banks due to a poor credit history. Its consumer credit business is gaining scale but is also subject to increased regulatory scrutiny.
A Look at Credit Corp Group Ltd's Dividend History
Credit Corp Group Ltd has maintained a consistent dividend payment record since 2022, with dividends currently distributed bi-annually. The company has increased its dividend each year since -, earning it the status of a dividend king. This honor is given to companies that have increased their dividend each year for at least the past 2023 years.
Understanding Credit Corp Group Ltd's Dividend Yield and Growth
As of today, Credit Corp Group Ltd boasts a 12-month trailing dividend yield of 2.47% and a 12-month forward dividend yield of 2.88%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, Credit Corp Group Ltd's annual dividend growth rate was -6.40%. When extended to a five-year horizon, this rate increased to -2.40% per year. Over the past decade, the company's annual dividends per share growth rate stands at 5.60%.
Based on Credit Corp Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Credit Corp Group Ltd stock as of today is approximately 2.19%.
Assessing the Sustainability of Credit Corp Group Ltd's Dividend
The sustainability of a company's dividend can be assessed by evaluating its payout ratio. The dividend payout ratio offers 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, Credit Corp Group Ltd's dividend payout ratio is 0.45.
Further, Credit Corp Group Ltd's profitability rank of 8 out of 10 as of 2023-06-30 suggests good profitability prospects. The company has reported positive net income for each of the past decade, further solidifying its high profitability.
Credit Corp Group Ltd's Growth Metrics and Future Outlook
A company's growth metrics are crucial for ensuring the sustainability of dividends. Credit Corp Group Ltd's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors.
Credit Corp Group Ltd's revenue per share and 3-year revenue growth rate indicate a strong revenue model. The company's revenue has increased by approximately 8.70% per year on average, a rate that outperforms approximately 61.18% 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, Credit Corp Group Ltd's earnings increased by approximately 73.20% per year on average, a rate that outperforms approximately 89.45% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.10% outperforms approximately 41.33% of global competitors.
Conclusion
In conclusion, Credit Corp Group Ltd's consistent dividend payments, notable dividend growth rate, reasonable payout ratio, high profitability, and robust growth metrics suggest a promising outlook for its dividend sustainability. This analysis should serve as an insightful resource for investors looking to understand Credit Corp Group Ltd's dividend performance and potential. As always, it's essential to conduct your due diligence before making investment decisions.
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