Exploring the Dividend Performance and Sustainability of Indorama Ventures PCL (INDOY, Financial)
Indorama Ventures PCL (INDOY) recently announced a dividend of $0.05 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-05-24. 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 Indorama Ventures PCL's dividend performance and assess its sustainability.
What Does Indorama Ventures PCL Do?
Indorama Ventures PCL is engaged in the manufacture and distribution of Polyethylene Terephthalate, Purified Terephthalic Acid, Paraxylene, recycling, Purified Isophthalic Acid, Naphthalene Dicarboxylate, PET preforms and packaging, Integrated EG, Integrated purified EO, PO/MTBE, Integrated Surfactants comprising EOA, LAB and others, Fibers including Polyester, Rayon, Nylon, Polypropylene, composites and worsted wool fibers products. The company operates in three reportable segments: Combined PET, Integrated Oxides and Derivatives, and Fibers. The maximum revenue is derived from the Combined PET segment.
A Glimpse at Indorama Ventures PCL's Dividend History
Indorama Ventures PCL has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Indorama Ventures PCL's Dividend Yield and Growth
As of today, Indorama Ventures PCL currently has a 12-month trailing dividend yield of 3.94% and a 12-month forward dividend yield of 3.58%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Indorama Ventures PCL's annual dividend growth rate was 29.90%. Extended to a five-year horizon, this rate decreased to -2.80% per year. And over the past decade, Indorama Ventures PCL's annual dividends per share growth rate stands at an impressive 14.70%.
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 2024-03-31, Indorama Ventures PCL's dividend payout ratio is 0.00.
Indorama Ventures PCL's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Indorama Ventures PCL's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Indorama Ventures PCL'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 Indorama Ventures PCL's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Indorama Ventures PCL's revenue has increased by approximately 17.80% per year on average, a rate that outperforms approximately 77.61% 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, Indorama Ventures PCL's earnings increased by approximately -239.40% per year on average, a rate that outperforms approximately 0.56% of global competitors.
Conclusion and Next Steps
The analysis of Indorama Ventures PCL's dividend payments, growth rates, payout ratio, profitability, and growth metrics illuminates a nuanced picture of its financial health and dividend sustainability. While the company shows strong historical dividend growth and solid profitability, the negative EPS growth rate could be a concern for future dividend sustainability. Investors should monitor these metrics closely to make informed 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.
