Exploring the Sustainability and Growth of Genpact Ltd's Dividends
Genpact Ltd (G, Financial) recently announced a dividend of $0.15 per share, scheduled for payment on June 26, 2024, with the ex-dividend date set for June 10, 2024. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This analysis will leverage data from GuruFocus to evaluate the performance and sustainability of Genpact Ltd's dividends.
What Does Genpact Ltd Do?
Genpact Ltd is a global leader in business process management services, serving various industry verticals including banking, financial services, insurance, consumer goods, life sciences, healthcare, and high-tech. As a spin-off from General Electric, which remains a significant revenue source, Genpact offers a range of services from risk compliance to IT solutions. The company primarily operates in India, contributing extensively to its revenue generation.
A Glimpse at Genpact Ltd's Dividend History
Since 2017, Genpact Ltd has consistently distributed dividends, currently on a quarterly basis. This regular dividend payment underlines the company's financial health and commitment to returning value to shareholders.
Breaking Down Genpact Ltd's Dividend Yield and Growth
Genpact Ltd boasts a trailing dividend yield of 1.69% and a forward dividend yield of 1.83%, indicating expectations of increased dividend payments over the next year. Over the past three years, the company's annual dividend growth rate was 12.10%, which further accelerated to 13.00% over a five-year period. The 5-year yield on cost for Genpact Ltd stock is approximately 3.15%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio of Genpact Ltd is 0.16 as of March 31, 2024, suggesting that the company retains a substantial portion of its earnings for growth and operational stability. Genpact's profitability rank is an impressive 9 out of 10, reflecting strong earnings potential compared to its peers. The consistent positive net income over the past decade further supports its robust profitability.
Growth Metrics: The Future Outlook
Genpact Ltd's growth rank stands at 9 out of 10, indicating a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate of 8.50% per year suggest a solid revenue model, though it slightly underperforms against about 52% of global competitors. Moreover, Genpact's 3-year EPS growth rate of 27.30% per year and a 5-year EBITDA growth rate of 16.80% indicate its potential for sustained earnings and dividends in the long run.
In conclusion, Genpact Ltd's disciplined approach to dividend payments, combined with its strong payout ratio, profitability, and growth metrics, positions it as a compelling choice for value investors focused on dividend income. Investors seeking to expand their portfolio with high-dividend yield stocks should consider the robust profile of Genpact Ltd. For more detailed analysis and stock screening, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
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