Insight into San Miguel Corp's Upcoming Dividend and Financial Health
San Miguel Corp (SMGBF, Financial) recently announced a dividend of $0.35 per share, payable on 2024-01-26, 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 San Miguel Corp's dividend performance and assess its sustainability.
What Does San Miguel Corp Do?
San Miguel Corp is a diversified conglomerate based in the Philippines, with a strong presence in various industries. The company operates through multiple segments including food and beverage; packaging; energy; fuel and oil; and infrastructure. The bulk of its revenue is generated from the fuel and oil segments, where San Miguel Corp is involved in refining crude oil and distributing refined petroleum products.
A Glimpse at San Miguel Corp's Dividend History
San Miguel Corp has established a reputation for consistent dividend payments, with a history dating back to 2011. The dividends are paid out quarterly, reflecting the company's commitment to providing regular returns to its shareholders. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down San Miguel Corp's Dividend Yield and Growth
As of today, San Miguel Corp currently has a 12-month trailing dividend yield of 1.33% and a 12-month forward dividend yield of 1.33%. This indicates that investors can expect similar dividend payments over the next year, based on current projections. Additionally, San Miguel Corp has experienced an annual dividends per share growth rate of 0.40% over the past decade.
With these figures in mind, the 5-year yield on cost for San Miguel Corp stock stands at approximately 1.33%, based on current dividend yield and past growth rates.
The Sustainability Question: Payout Ratio and Profitability
When evaluating the sustainability of a dividend, it's crucial to consider the company's payout ratio. San Miguel Corp's dividend payout ratio is currently 0.00 as of 2023-09-30, which may suggest that the company is not distributing earnings as dividends or that there's an anomaly in the data. Furthermore, San Miguel Corp's profitability rank is 7 out of 10, indicating good profitability prospects and consistent net profit over the last decade.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must demonstrate solid growth metrics. San Miguel Corp's growth rank of 7 out of 10 suggests a positive growth trajectory. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of 13.90%, outperforming approximately 70.58% of global competitors.
Concluding Thoughts on San Miguel Corp's Dividend Prospects
In conclusion, San Miguel Corp's consistent dividend payments, modest growth rate, and strong profitability and growth metrics paint a promising picture for value investors. While the payout ratio currently shows an anomaly, the company's overall financial health suggests a capacity to maintain its dividend policy. Investors should consider these factors when assessing San Miguel Corp as a potential addition to their dividend portfolios. For those interested in high-dividend yield opportunities, GuruFocus Premium offers a High Dividend Yield Screener for further exploration.
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.
