Insight into Upcoming Dividends and Historical Performance
Compass Group PLC (CMPGY, Financial) recently announced a dividend of $0.21 per share, payable on an unspecified future date, with the ex-dividend date set for June 14, 2024. As investors anticipate this upcoming payment, it's crucial to also consider the company's dividend history, yield, and growth rates. This analysis utilizes data from GuruFocus to delve into the dividend performance of Compass Group PLC and evaluate its sustainability.
What Does Compass Group PLC Do?
Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales exceeding GBP 30 billion. The company's business model focuses on on-premises catering facilities, contributing over 80% of its revenue. Additionally, Compass Group PLC offers support services such as cleaning, office services, and grounds maintenance, further diversifying its business operations.
A Glimpse at Compass Group PLC's Dividend History
Since 2022, Compass Group PLC has maintained a consistent dividend payment schedule, distributing dividends bi-annually. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Compass Group PLC's Dividend Yield and Growth
Compass Group PLC currently boasts a 12-month trailing dividend yield of 1.91% and a forward dividend yield of 1.96%, indicating an expected increase in dividend payments over the next year. The company's annual dividend growth rate over the past three years was 11.10%, reflecting a robust upward trend in dividend payouts. The 5-year yield on cost stands at approximately 1.91% as of today.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of its dividends, it's essential to consider Compass Group PLC's dividend payout ratio, which currently stands at 0.46. This ratio indicates that the company retains a significant portion of its earnings for future growth and potential downturns. Additionally, the company's profitability rank is 7 out of 10, reflecting good profitability prospects. Compass Group PLC has consistently reported positive net income for the past decade, further bolstering its financial stability.
Growth Metrics: The Future Outlook
For dividend sustainability, robust growth metrics are crucial. Compass Group PLC's growth rank of 7 out of 10 suggests a favorable growth trajectory. The company's revenue per share and 3-year revenue growth rate of 13.70% per year outperform approximately 62.09% of global competitors. Furthermore, the 3-year EPS growth rate of 66.60% per year and the 5-year EBITDA growth rate of 0.30% highlight the company's capability to sustain and grow its earnings.
Conclusion
Considering Compass Group PLC's consistent dividend payments, robust dividend growth rate, healthy payout ratio, and solid profitability and growth metrics, the company presents a compelling case for dividend investors. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
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