Exploring the Dividend History, Yield, Growth, and Sustainability of Comvita Ltd (CVNZF, Financial)
Comvita Ltd (CVNZF) recently announced a dividend of $0.03 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-04. As investors anticipate this upcoming payment, it is crucial to examine the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Comvita Ltd's dividend performance and assess its sustainability.
Understanding Comvita Ltd
Comvita Ltd is a New Zealand-based company focused on the development and marketing of natural health and wellbeing products. Its product range includes manuka honey, manuka honey extract, nutritional oils, royal jelly, olive leaf extract, and others. The company's geographical segments include Greater China; ANZ; Rest of Asia; Rest of Asia and EMEA. The majority of its revenue is derived from Greater China.
Comvita Ltd's Dividend History
Since 2021, Comvita Ltd has maintained a consistent dividend payment record, with dividends currently distributed on a bi-annual basis. Below is a chart showing the annual Dividends Per Share for tracking historical trends.
Comvita Ltd's Dividend Yield and Growth
Currently, Comvita Ltd has a 12-month trailing dividend yield of 2.08% and a 12-month forward dividend yield of 1.77%, indicating an expected decrease in dividend payments over the next 12 months. Based on Comvita Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Comvita Ltd stock stands at approximately 2.08% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
Understanding the sustainability of a company's dividend requires an examination of its payout ratio. The dividend payout ratio indicates the portion of earnings that 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, Comvita Ltd's dividend payout ratio is 0.43.
Comvita Ltd's profitability rank is 5 out of 10 as of 2023-06-30, signifying fair profitability. The company has reported net profit in 8 out of the past 10 years.
Future Growth Prospects
For dividends to be sustainable, a company must exhibit robust growth metrics. Comvita Ltd's growth rank of 5 out of 10 suggests a fair growth outlook. Revenue, the lifeblood of any company, combined with the 3-year revenue growth rate, indicates a strong revenue model. Comvita Ltd's revenue has increased by approximately -4.80% per year on average, a rate that underperforms approximately 82.27% of global competitors.
Concluding Thoughts
Considering Comvita Ltd's consistent dividend payments, fair profitability, and growth metrics, it appears to offer a stable dividend performance. However, the expected decrease in dividend payments over the next 12 months, combined with a revenue growth rate that underperforms the majority of global competitors, warrants careful consideration for investors seeking long-term dividend growth. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
