Insight into DCC PLC's Upcoming Dividend and Historical Performance
DCC PLC (DCCPF, Financial) recently announced a dividend of $0.63 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-24. 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 look into DCC PLC's dividend performance and assess its sustainability.
What Does DCC PLC Do?
DCC PLC is an international sales, marketing, and support services company operating across three divisions: Energy, Technology, and Healthcare. It generates maximum revenue from the Energy segment. The company's trading activities are principally in Europe with a growing presence in the United States and Asia.
A Glimpse at DCC PLC's Dividend History
DCC PLC has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down DCC PLC's Dividend Yield and Growth
As of today, DCC PLC currently has a 12-month trailing dividend yield of 3.60% and a 12-month forward dividend yield of 3.65%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, DCC PLC's annual dividend growth rate was 8.00%. Extended to a five-year horizon, this rate increased to 9.00% per year. And over the past decade, DCC PLC's annual dividends per share growth rate stands at an impressive 10.90%.
Based on DCC PLC's dividend yield and five-year growth rate, the 5-year yield on cost of DCC PLC stock as of today is approximately 5.54%.
The Sustainability Question: 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 2023-03-31, DCC PLC's dividend payout ratio is 0.53.
DCC PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks DCC PLC's profitability 8 out of 10 as of 2023-03-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. DCC PLC'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 DCC PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. DCC PLC's revenue has increased by approximately 14.50% per year on average, a rate that outperforms approximately 56.89% 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, DCC PLC's earnings increased by approximately 8.00% per year on average, a rate that outperforms approximately 35.9% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 7.20%, which outperforms approximately 40.48% of global competitors.
In conclusion, DCC PLC's consistent dividend payments, robust dividend growth rate, moderate payout ratio, strong profitability, and positive growth metrics paint a promising picture for current and prospective investors. The company's commitment to shareholder returns, coupled with its financial health, suggests that DCC PLC is positioned to maintain, if not enhance, its dividend distributions in the foreseeable future. As investors consider adding DCC PLC to their portfolios, they should weigh these factors alongside their investment goals and market outlook. GuruFocus Premium users can screen for high-dividend yield stocks using 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.