Yahoo Finance Ball Corp's Dividend Analysis
Exploring the Upcoming Dividend and Financial Health of Ball Corp
Ball Corp (NYSE:BALL) recently announced a dividend of $0.2 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-06-03. 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 Ball Corps dividend performance and assess its sustainability.
What Does Ball Corp Do?
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Ball is the world's largest metal can manufacturer with market share over 40% in its three main regions (North America, Europe, and South America). The company is focused on increasing capacity amid a wave of new developed-market demand, while also investing in faster-growing emerging-market economies. Ball maintains a small presence in the U.S. defense industry through its aerospace segment. Ball spun-off its glass jar business in 1993 and is now owned by Newell. The company reports three segmentsbeverage packaging, North and Central America (43% of 2023 revenue), beverage packaging, EMEA (24%), beverage packaging, South America (14%)and it generated $14 billion in revenue in 2023.
A Glimpse at Ball Corp's Dividend History
Ball Corp has maintained a consistent dividend payment record since 1986. Dividends are currently distributed on a quarterly basis. Ball Corp has increased its dividend each year since 1997. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 27 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ball Corp's Dividend Yield and Growth
As of today, Ball Corp currently has a 12-month trailing dividend yield of 1.15% and a 12-month forward dividend yield of 1.15%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Ball Corp's annual dividend growth rate was 10.10%. Extended to a five-year horizon, this rate increased to 14.50% per year. And over the past decade, Ball Corp's annual dividends per share growth rate stands at an impressive 14.80%.
Based on Ball Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Ball Corp stock as of today is approximately 2.26%.
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, Ball Corp's dividend payout ratio is 0.28.
Ball Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Ball Corp's profitability 8 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. Ball Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Ball Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Ball Corp's revenue has increased by approximately 7.70% per year on average, a rate that outperforms approximately 57.49% 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, Ball Corp's earnings increased by approximately -0.80% per year on average, a rate that outperforms approximately 39.56% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 3.90%, which outperforms approximately 45.91% of global competitors.
Concluding Thoughts on Ball Corp's Dividend Sustainability
Ball Corp's consistent dividend growth, strong payout ratio, and robust profitability metrics paint a promising picture for current and prospective investors. The company's strategic positioning in essential markets, coupled with its financial health, suggests a sustainable dividend payout for the foreseeable future. Investors seeking to diversify or strengthen their income-generating portfolio might find Ball Corp an attractive option. 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.
This article first appeared on GuruFocus.
