Examining the dividend history, yield, and growth of San Miguel Corp (SMGBF, Financial)
San Miguel Corp (SMGBF) recently announced a dividend of $0.35 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-05. As investors anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Let's delve into San Miguel Corp's dividend performance and assess its sustainability using data from GuruFocus.
Understanding San Miguel Corp
San Miguel Corp is a Philippines-based holding company. Its operating segments encompass food and beverage; packaging; energy; fuel and oil; and infrastructure. The company derives a majority of its revenue from the fuel and oil segments, which is involved in refining crude oil and marketing and distribution of refined petroleum products.
A Look at San Miguel Corp's Dividend History
San Miguel Corp has upheld a consistent dividend payment record since 2011, with dividends currently distributed on a quarterly basis. The chart below displays annual Dividends Per Share for tracking historical trends.
Dissecting San Miguel Corp's Dividend Yield and Growth
Currently, San Miguel Corp boasts a 12-month trailing dividend yield of 1.38% and a 12-month forward dividend yield of 1.35%. This suggests a potential decrease in dividend payments over the next 12 months. Over the past decade, the company's annual dividends per share growth rate stands at 0.40%. Based on these figures, the 5-year yield on cost of San Miguel Corp stock is approximately 1.38% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend can be gauged by examining the company's payout ratio. The dividend payout ratio reveals the portion of earnings the company distributes as dividends. A lower ratio implies that the company retains a substantial part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, San Miguel Corp's dividend payout ratio is 0.00.
San Miguel Corp's profitability rank, offers a glimpse into the company's earnings prowess relative to its peers. With a rank of 7 out of 10 as of 2023-06-30, San Miguel Corp demonstrates good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Future Prospects: Growth Metrics
Robust growth metrics are vital for the sustainability of dividends. San Miguel Corp's growth rank of 7 out of 10 implies a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. San Miguel Corp's revenue has increased by approximately 13.90% per year on average, a rate that outperforms approximately 71.46% of global competitors.
Concluding Thoughts
Considering San Miguel Corp's consistent dividend payments, modest growth rate, low payout ratio, good profitability, and robust growth metrics, it presents a compelling case for value investors seeking a reliable dividend-paying stock. However, investors must continue to monitor these metrics to ensure the sustainability of future dividends.
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