Assessing the Sustainability and Growth of Marimekko Oyj's Dividend
Marimekko Oyj (MKKOF, Financial) recently announced a dividend of $0.37 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-04-17. 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 Marimekko Oyj's dividend performance and assess its sustainability.
What Does Marimekko Oyj Do?
Marimekko Oyj is a Finnish design company known for its original prints and colors. It designs and manufactures apparel and accessories, with a product portfolio that includes clothing, bags, and a variety of accessories such as shoes, socks, tights, jewelry, scarves, belts, and umbrellas. Marimekko Oyj also extends its design philosophy into home decor, offering items ranging from textiles to tableware, making it a comprehensive lifestyle brand.
A Glimpse at Marimekko Oyj's Dividend History
Marimekko Oyj has maintained a consistent dividend payment record since 2021, with dividends currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Marimekko Oyj's Dividend Yield and Growth
As of today, Marimekko Oyj currently has a 12-month trailing dividend yield of 2.98% and a 12-month forward dividend yield of 3.17%. This suggests an expectation of increased dividend payments over the next 12 months. Additionally, the 5-year yield on cost of Marimekko Oyj stock as of today is approximately 2.98%.
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. Marimekko Oyj's dividend payout ratio is 0.59 as of 2023-12-31, indicating a balance between returning profits to shareholders and retaining earnings for growth. Furthermore, the company's profitability rank of 9 out of 10, along with a decade of positive net income, underscores its strong profitability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must demonstrate robust growth. Marimekko Oyj's growth rank of 9 out of 10 signals a favorable growth trajectory compared 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 12.10%, outperforming approximately 72.12% of global competitors. Additionally, Marimekko Oyj's 3-year EPS growth rate and 5-year EBITDA growth rate further showcase its earnings growth potential and operational efficiency.
Concluding Thoughts on Marimekko Oyj's Dividend Prospects
In conclusion, Marimekko Oyj's dividend payments, supported by a reasonable payout ratio and robust profitability, appear sustainable. The company's growth metrics, including revenue and earnings growth, suggest a favorable outlook for future dividend increases. As value investors consider the potential for long-term income, Marimekko Oyj presents a compelling case for those seeking dividends backed by solid financial health and growth prospects. Will Marimekko Oyj continue to deliver shareholder value through its dividends? Only time will tell, but the indicators point towards a positive trajectory. For further analysis, GuruFocus Premium users can explore 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.
