A Comprehensive Analysis of the Upcoming Dividend, Yield, and Growth Rates
Findev Inc(TNSGF, Financial) recently announced a dividend of $0.01 per share, payable on 2023-10-19, with the ex-dividend date set for 2023-09-27. 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 Findev Incs dividend performance and assess its sustainability.
What Does Findev Inc Do?
Findev Inc is a real estate financing company that lends money to real estate projects that are identified as uniquely positioned to generate above-average returns in a two to three-year timeframe. It focuses on lending to residential and retail development projects within the Greater Toronto Area. It focuses on real estate projects that include condominiums, purpose-built rentals, townhouses, low-rise/subdivisions, and retail developments.
A Glimpse at Findev Inc's Dividend History
Findev Inc has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Findev Inc's Dividend Yield and Growth
As of today, Findev Inc currently has a 12-month trailing dividend yield of 7.59% and a 12-month forward dividend yield of 7.61%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Findev Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Findev Inc stock as of today is approximately 7.59%.
The Sustainability Question: 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, Findev Inc's dividend payout ratio is 0.60.
Findev Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Findev Inc's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Findev Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Findev Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Findev Inc's revenue has increased by approximately 14.80% per year on average, a rate that outperforms than approximately 82.03% 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, Findev Inc's earnings increased by approximately -4.30% per year on average, a rate that outperforms than approximately 15.61% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 20.70%, which outperforms than approximately 82.11% of global competitors.
Next Steps
Considering Findev Inc's consistent dividend payments, growth rate, payout ratio, profitability and growth metrics, the company appears to be on a solid footing. However, investors should continue to monitor these metrics to ensure the sustainability of dividends. The future looks promising for Findev Inc, but as always, thorough research and careful consideration are necessary before making any investment decisions.
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