An in-depth analysis of the Colombian food conglomerate's dividend history, yield, growth rate, and more
Grupo Nutresa SA (GCHOY, Financial) recently announced a dividend of $0.02 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-05. 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 Grupo Nutresa SA's dividend performance and assess its sustainability.
A Brief Overview of Grupo Nutresa SA
Grupo Nutresa SA is a processed food company that operates through eight business units: Cold Cuts; Biscuits; Chocolates; Tresmontes Lucchetti; Coffee; Retail Food; Ice Cream; and Pasta. Most of the company's revenue comes from food products. Beverage, candy, and snack products account for the remaining revenue. Most of the company's production and sales take place in Colombia. Grupo Nutresa also has production plants and distribution networks in more than a dozen other countries, primarily in the Americas.
Tracing Grupo Nutresa SA's Dividend History
Grupo Nutresa SA has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Decoding Grupo Nutresa SA's Dividend Yield and Growth
As of today, Grupo Nutresa SA currently has a 12-month trailing dividend yield of 2.25% and a 12-month forward dividend yield of 2.32%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Grupo Nutresa SA's annual dividend growth rate was 14.50%. Extended to a five-year horizon, this rate decreased to 10.30% per year. And over the past decade, Grupo Nutresa SA's annual dividends per share growth rate stands at an impressive 13.20%.
Based on Grupo Nutresa SA's dividend yield and five-year growth rate, the 5-year yield on cost of Grupo Nutresa SA stock as of today is approximately 3.67%.
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, Grupo Nutresa SA's dividend payout ratio is 0.54.
Grupo Nutresa SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Grupo Nutresa SA's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Assessing Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Grupo Nutresa SA'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 Grupo Nutresa SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Grupo Nutresa SA's revenue has increased by approximately 19.80% per year on average, a rate that outperforms approximately 81.07% 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, Grupo Nutresa SA's earnings increased by approximately 19.50% per year on average, a rate that outperforms approximately 63.33% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 14.70%, outperforms approximately 68.77% of global competitors.
Final Thoughts
With its consistent dividend payment history, impressive growth rates, and robust profitability, Grupo Nutresa SA presents an attractive prospect for dividend-focused investors. Its strong growth metrics further reinforce the company's capacity to sustain its dividend payouts in the long term. However, investors should continue to monitor the company's performance and industry trends to make informed decisions.
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