Assessing the Sustainability and Growth of Grupo Nutresa SA's Dividends
Grupo Nutresa SA(GCHOY, Financial) recently announced a dividend of $0.02 per share, payable on 2024-01-25, with the ex-dividend date set for 2024-01-04. 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 Grupo Nutresa SA's dividend performance and assess its sustainability.
What Does Grupo Nutresa SA Do?
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.
A Glimpse at 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.
Breaking Down Grupo Nutresa SA's Dividend Yield and Growth
As of today, Grupo Nutresa SA currently has a 12-month trailing dividend yield of 2.30% and a 12-month forward dividend yield of 2.36%. 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 3.75%.
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 2023-09-30, Grupo Nutresa SA's dividend payout ratio is 0.66.
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 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of 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. 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 80.68% 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 19.70% per year on average, a rate that outperforms approximately 63.23% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.70%, which outperforms approximately 70.65% of global competitors.
Next Steps
In conclusion, Grupo Nutresa SA demonstrates a strong dividend track record, complemented by a history of consistent dividend growth. The company's prudent payout ratio, robust profitability, and positive growth metrics suggest that its dividends are well-positioned for sustainability. Investors seeking to capitalize on steady income streams may find Grupo Nutresa SA an attractive option, especially when considering the company's forward-looking growth potential. As value investors continue to seek out high-yield opportunities, Grupo Nutresa SA's dividends could offer a blend of income and growth prospects worth exploring.
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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.
