Assessing the Sustainability and Growth Prospects of ODMUF's Dividends
Old Mutual Ltd (ODMUF, Financial) recently announced a dividend of $0.32 per share, payable on 2023-10-23, with the ex-dividend date set for 2023-10-19. As investors anticipate this upcoming payment, the focus also shifts to the company's dividend history, yield, and growth rates. Using GuruFocus data, we delve into Old Mutual Ltd's dividend performance and evaluate its sustainability.
Understanding Old Mutual Ltd's Business
Old Mutual Ltd offers financial services encompassing wealth management, banking, asset management, and insurance. The company is segmented into various operational divisions, including the mass and foundation cluster; Personal Finance and Wealth Management; Old Mutual Investments; Old Mutual corporate; Old Mutual Insure; Old Mutual Africa Regions; and other group activities.
Old Mutual Ltd's Dividend History
Since 2020, Old Mutual Ltd has upheld a consistent dividend payment record, distributing dividends bi-annually. The following chart depicts the annual Dividends Per Share for historical trend tracking.
Old Mutual Ltd's Dividend Yield and Growth
Currently, Old Mutual Ltd has a 12-month trailing dividend yield of 7.13% and a 12-month forward dividend yield of 7.71%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was -13.40%. Based on Old Mutual Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Old Mutual Ltd stock as of today is approximately 7.13%.
Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend can be evaluated by analyzing the company's payout ratio. Old Mutual Ltd's dividend payout ratio of 0.51 as of 2023-06-30 suggests that the company retains a substantial portion of its earnings, ensuring funds for future growth and unexpected downturns. The company's profitability rank of 6 out of 10 indicates fair profitability, with net profit reported in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are crucial for sustaining dividends. Old Mutual Ltd's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate demonstrate a strong revenue model, despite a growth rate that underperforms approximately 90.61% of global competitors. Furthermore, Old Mutual Ltd's 3-year EPS growth rate indicates its ability to grow earnings, crucial for long-term dividend sustainability. However, this rate underperforms approximately 69.02% of global competitors.
Conclusion
Considering Old Mutual Ltd's consistent dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, the company presents a mixed outlook. While its dividend payments and profitability rank are encouraging, the negative growth rates and underperformance relative to global competitors raise concerns. Investors should monitor these metrics closely to make informed decisions. For high-dividend yield stocks, GuruFocus Premium users can use the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
