Assessing the Upcoming Dividend and Historical Performance
Fortune Brands Innovations Inc (FBIN, Financial) recently announced a dividend of $0.24 per share, payable on 2024-03-13, with the ex-dividend date set for 2024-02-22. 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 Fortune Brands Innovations Inc's dividend performance and assess its sustainability.
What Does Fortune Brands Innovations Inc Do?
Fortune Brands Innovations is a leading home and security products company that operates in three reportable segments. The company's $2.6 billion water segment, led by the Moen brand, offers faucets, showers, and other plumbing fixtures; the $1.3 billion outdoors segment sells entry doors under the Therma-Tru brand and Fiberon-branded patio decking; and the $723 million security segment provides locks and other security devices under the Master Lock, SentrySafe, Yale, and August brands.
A Glimpse at Fortune Brands Innovations Inc's Dividend History
Fortune Brands Innovations Inc has maintained a consistent dividend payment record since 2013, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Fortune Brands Innovations Inc's Dividend Yield and Growth
As of today, Fortune Brands Innovations Inc has a 12-month trailing dividend yield of 1.16% and a 12-month forward dividend yield of 1.17%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was -1.40%. Extending to a five-year horizon, this rate increased to 4.40% per year. Over the past decade, Fortune Brands Innovations Inc's annual dividends per share growth rate stands at an impressive 11.40%.
Based on Fortune Brands Innovations Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Fortune Brands Innovations Inc stock as of today is approximately 1.44%.
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 2023-12-31, Fortune Brands Innovations Inc's dividend payout ratio is 0.24.
Fortune Brands Innovations Inc's profitability rank, which stands at 7 out of 10 as of 2023-12-31, suggests good profitability prospects. The company has also reported positive net income each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
A company must have robust growth metrics to ensure the sustainability of dividends. Fortune Brands Innovations Inc's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 11.90%, outperforming about 73.44% of global competitors.
Fortune Brands Innovations Inc's 3-year EPS growth rate highlights its capability to grow earnings, a critical component for sustaining dividends. The company's earnings have increased by an average of approximately 11.10% per year over the past three years, outperforming about 57.59% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 7.00% outperforms about 55.62% of global competitors.
Concluding Thoughts on Fortune Brands Innovations Inc's Dividend Outlook
Fortune Brands Innovations Inc's consistent dividend payments, coupled with a solid dividend growth rate, favorable payout ratio, and strong profitability and growth metrics, position the company as a potentially attractive option for value investors focused on dividend income. However, investors should continue to monitor these factors to ensure the ongoing reliability of their investment. For those seeking to expand their dividend portfolio, GuruFocus Premium users can explore other high-dividend yield opportunities 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.
