A Comprehensive Analysis of Thule Group AB's Dividend Performance and Sustainability
Thule Group AB(THUPY, Financial) recently announced a dividend of $0.21 per share, payable on 2023-10-25, with the ex-dividend date set for 2023-10-04. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Thule Group AB's dividend performance and evaluate its sustainability.
Decoding Thule Group AB
Thule Group AB is a leading manufacturer of sports and outdoor products. The company develops, manufactures, and markets products within the product categories of Sport & Cargo Carriers, Juvenile & Pet Products, RV Products, and Packs, Bags & Luggage. It operates in two segments: Region Europe and ROW, and Region Americas, with a geographical presence spanning Sweden, Other Nordic countries, Germany, Other Europe, the USA, Other North America, Central/South America, Asia/Pacific Rim, and the Rest of the world.
Exploring Thule Group AB's Dividend History
Thule Group AB has consistently distributed dividends since 2021, with payouts currently made bi-annually. The chart below displays annual Dividends Per Share for tracking historical trends.
Analyzing Thule Group AB's Dividend Yield and Growth
Thule Group AB currently has a 12-month trailing dividend yield of 4.18% and a 12-month forward dividend yield of 3.53%. This indicates an expected decrease in dividend payments over the next 12 months. Over the past three years, Thule Group AB's annual dividend growth rate was 22.90%. Based on Thule Group AB's dividend yield and five-year growth rate, the 5-year yield on cost of Thule Group AB stock as of today is approximately 4.18%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To ascertain the sustainability of the dividend, it's essential to study the company's 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, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, Thule Group AB's dividend payout ratio is 1.23, which may suggest that the company's dividend may not be sustainable. Thule Group AB's profitability rank of 8 out of 10 suggests good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Deciphering Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must have robust growth metrics. Thule Group AB's growth rank of 8 out of 10 suggests a strong growth trajectory relative to its competitors. Thule Group AB's revenue has increased by approximately 12.30% per year on average, a rate that outperforms approximately 79.92% 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, Thule Group AB's earnings increased by approximately 12.30% per year on average, a rate that outperforms approximately 50.3% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 16.80% outperforms approximately 63.76% of global competitors.
Conclusion
Despite Thule Group AB's impressive dividend history and growth, the high payout ratio raises concerns about the sustainability of future dividends. However, the company's strong profitability and growth metrics suggest 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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