Unveiling the Dividend Performance and Sustainability of Concentrix Corp
Concentrix Corp (CNXC, Financial) recently announced a dividend of $0.3 per share, payable on 2023-11-07, with the ex-dividend date set for 2023-10-26. This announcement has brought the company's dividend history, yield, and growth rates into focus. Using GuruFocus data, let's delve into Concentrix Corp's dividend performance and assess its sustainability.
Understanding Concentrix Corp's Business Model
Concentrix Corp is a technology-enabled global business services company specializing in customer engagement and enhancing business performance. The company provides comprehensive solutions that streamline communication between clients and their customers, offer analytics and process optimization, and support client-centric operations and back-office processing across the enterprise. Concentrix Corp's solutions span four key areas: Customer Lifecycle Management; CX/UX Strategy and Design; Digital Transformation; and VOC and Analytics. Additionally, the company offers insurance, marketing, and automation solutions.
Concentrix Corp's Dividend History
Concentrix Corp has consistently paid out dividends since 2021, with distributions occurring on a quarterly basis. The following chart shows the annual Dividends Per Share for tracking historical trends.
Concentrix Corp's Dividend Yield and Growth
As of today, Concentrix Corp has a 12-month trailing dividend yield of 1.46% and a 12-month forward dividend yield of 1.63%. This suggests an expected increase in dividend payments over the next 12 months. Concentrix Corp's dividend yield of 1.46% is near a 10-year high and outperforms 40.74% of global competitors in the Software industry, making it an attractive proposition for income investors.
Based on Concentrix Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Concentrix Corp stock as of today is approximately 1.46%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is determined by examining the company's payout ratio. The dividend payout ratio shows the proportion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a substantial part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-08-31, Concentrix Corp's dividend payout ratio is 0.16.
Concentrix Corp's profitability rank of 7 out of 10, as of 2023-08-31, suggests good profitability prospects. The company has reported net profit in 6 out of the past 10 years.
Concentrix Corp's Growth Metrics: A Look into the Future
For dividends to be sustainable, the company must demonstrate robust growth metrics. Concentrix Corp's growth rank of 7 out of 10 suggests a promising growth trajectory relative to its competitors. Concentrix Corp's revenue per share and 3-year revenue growth rate indicate a strong revenue model. The company's revenue has increased by approximately 10.30% per year on average, outperforming approximately 55.38% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical factor for sustaining dividends in the long run. Over the past three years, Concentrix Corp's earnings have increased by approximately 54.00% per year on average, outperforming approximately 89.55% of global competitors. Furthermore, the company's 5-year EBITDA growth rate of 56.00% outperforms approximately 94.97% of global competitors.
Concluding Thoughts
In conclusion, Concentrix Corp's consistent dividend payments, promising growth rate, low payout ratio, and good profitability and growth metrics make it a compelling choice for dividend investors. However, as with any investment, it's crucial to conduct thorough research and consider all relevant factors before making a decision.
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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.
