Wilmar International Ltd's Dividend Analysis

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Understanding the Dividend Prospects of Wilmar International Ltd

Wilmar International Ltd (WLMIF, Financial) recently announced a dividend of $0.11 per share, payable on 2024-05-14, with the ex-dividend date set for 2024-04-29. 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 Wilmar International Ltd's dividend performance and assess its sustainability.

What Does Wilmar International Ltd Do?

Wilmar International Ltd is a processor of palm and lauric oils and a producer of consumer pack edible oils. Its operating segment includes Food Products; Feed and Industrial Products; Plantation and Sugar Milling, Associates and Joint Ventures and others. The company generates maximum revenue from the Feed and Industrial Products segment. Its Feed and Industrial Products segment comprises the processing, merchandising, and distribution of products, which includes animal feeds, non-edible palm and lauric products, agricultural commodities, oleochemicals, gas oil, and biodiesel. Geographically, it derives a majority of revenue from the People's Republic of China.

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A Glimpse at Wilmar International Ltd's Dividend History

Wilmar International Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

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Breaking Down Wilmar International Ltd's Dividend Yield and Growth

As of today, Wilmar International Ltd currently has a 12-month trailing dividend yield of 5.14% and a 12-month forward dividend yield of 5.11%. This suggests an expectation of stable dividend payments over the next 12 months. Over the past three years, Wilmar International Ltd's annual dividend growth rate was 9.10%. Extended to a five-year horizon, this rate increased to 11.40% per year. And over the past decade, Wilmar International Ltd's annual dividends per share growth rate stands at an impressive 10.80%.

Based on Wilmar International Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Wilmar International Ltd stock as of today is approximately 8.82%.

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, Wilmar International Ltd's dividend payout ratio is 0.52.

Wilmar International Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wilmar International Ltd's profitability 7 out of 10 as of 2023-12-31, 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. Wilmar International Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Wilmar International Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Wilmar International Ltd's revenue has increased by approximately 10.60% per year on average, a rate that outperforms approximately 61% 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, Wilmar International Ltd's earnings increased by approximately 0.20% per year on average, a rate that outperforms approximately 40.32% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 10.20%, which outperforms approximately 58.27% of global competitors.

Next Steps

In conclusion, Wilmar International Ltd's consistent dividend payments, impressive dividend growth rate, prudent payout ratio, robust profitability, and promising growth metrics paint a picture of a company that is well-positioned to sustain and potentially grow its dividends in the future. For value investors, Wilmar International Ltd represents a potentially attractive dividend investment, with the added benefit of exposure to the agribusiness sector. As with any investment, due diligence is essential, and investors should consider all aspects of the company's financial health before making decisions. 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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.