Exploring the Sustainability and Growth of Barnes Group Inc's Dividends
Introduction to Barnes Group Inc's Upcoming Dividend
Barnes Group Inc (B, Financial) recently announced a dividend of $0.16 per share, payable on 2024-06-10, with the ex-dividend date set for 2024-05-28. 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 Barnes Group Inc's dividend performance and assess its sustainability.
What Does Barnes Group Inc Do?
Barnes Group Inc is a U.S.-based industrial and aerospace manufacturer and service provider. It leverages world-class manufacturing capabilities and engineering to develop various processes, automation solutions, and applied technologies for industries ranging from aerospace and medical & personal care to mobility and packaging. The company operates through two segments: Industrial and Aerospace. The industrial segment manufactures precision parts, products, and systems for critical applications in end markets including transportation, industrial equipment, and consumer products. The aerospace segment provides machined components and assemblies for original equipment manufacturer turbine engine, airframe and industrial gas turbine builders, and the military.
A Glimpse at Barnes Group Inc's Dividend History
Barnes Group Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Barnes Group Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Barnes Group Inc's Dividend Yield and Growth
As of today, Barnes Group Inc currently has a 12-month trailing dividend yield of 1.57% and a 12-month forward dividend yield of 1.57%. This suggests an expectation of same dividend payments over the next 12 months. Extended to a five-year horizon, this rate increased to 0.50% per year. And over the past decade, Barnes Group Inc's annual dividends per share growth rate stands at 4.60%. Based on Barnes Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Barnes Group Inc stock as of today is approximately 1.61%.
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, Barnes Group Inc's dividend payout ratio is 0.50. Barnes Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Barnes Group Inc's profitability 7 out of 10 as of 2024-03-31, 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. Barnes Group Inc'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 Barnes Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Barnes Group Inc's revenue has increased by approximately 8.80% per year on average, a rate that outperforms approximately 51.06% 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, Barnes Group Inc's earnings increased by approximately -37.00% per year on average, a rate that outperforms approximately 8.19% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -32.40%, which outperforms approximately 2.88% of global competitors.
Conclusion
Considering Barnes Group Inc's consistent dividend payments, solid dividend growth rate, reasonable payout ratio, strong profitability, and robust growth metrics, the company presents a compelling case for investors seeking stable dividend income with potential for growth. As Barnes Group Inc continues to navigate the complexities of its industry, it remains a noteworthy candidate for dividend investors. 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.
