Delving into the Dividend Performance, Growth, and Sustainability of Mitsubishi Corp (MSBHF, Financial)
Mitsubishi Corp(MSBHF) recently announced a dividend of $100 per share, payable on 0000-00-00, with the ex-dividend date set for 2023-09-28. 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 Mitsubishi Corp's dividend performance and assess its sustainability.
Understanding Mitsubishi Corp's Business Model
Mitsubishi Corp is a conglomerate that operates businesses in various industries. Its operating segments include Natural Gas, Industrial materials, Petroleum & chemicals, Mineral resource, Industrial Infrastructure, Automotive, Food & Consumer Industry, Power Solution, and Urban Development.
Decoding Mitsubishi Corp's Dividend History
Mitsubishi Corp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Mitsubishi Corp's Dividend Yield and Growth
As of today, Mitsubishi Corp currently has a 12-month trailing dividend yield of 2.57% and a 12-month forward dividend yield of 3.01%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Mitsubishi Corp's annual dividend growth rate was 10.90%. Extended to a five-year horizon, this rate decreased to 9.00% per year. And over the past decade, Mitsubishi Corp's annual dividends per share growth rate stands at an impressive 13.50%.
Based on Mitsubishi Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Mitsubishi Corp stock as of today is approximately 3.95%.
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. 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, Mitsubishi Corp's dividend payout ratio is 0.27.
Mitsubishi Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mitsubishi Corp's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Assessing Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Mitsubishi Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Mitsubishi Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Mitsubishi Corp's revenue has increased by approximately 15.30% per year on average, a rate that outperforms than approximately 75.54% 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, Mitsubishi Corp's earnings increased by approximately 32.30% per year on average, a rate that outperforms than approximately 67.31% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 14.10%, which outperforms than approximately 61.86% of global competitors.
Conclusion
In conclusion, Mitsubishi Corp's steady dividend payments, impressive growth rate, and sustainable payout ratio, coupled with its strong profitability and growth metrics, make it a potentially attractive investment for dividend-focused investors. However, as with any investment, it's crucial to conduct your own thorough research and analysis.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
