Dole PLC's Dividend Analysis
Exploring the Sustainability and Growth of Dole PLC's Dividends
Dole PLC (NYSE:DOLE) recently announced a dividend of $0.08 per share, payable on 2024-07-05, with the ex-dividend date set for 2024-06-12. 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 Dole PLC's dividend performance and assess its sustainability.
What Does Dole PLC Do?
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Dole PLC operates in the North American and European markets for fresh fruits and vegetables. The company's segment includes Fresh Fruit; Diversified Fresh Produce - EMEA; Diversified Fresh Produce - Americas and ROW and Fresh Vegetables. It generates maximum revenue from the Diversified Fresh Produce - EMEA segment. Diversified Fresh Produce - EMEA segment includes Dole's Irish, Dutch, Spanish, Portuguese, French, Italian, U.K., Swedish, Danish, South African, Eastern European, and Brazilian businesses, the majority of which sell a variety of imported and local fresh fruits and vegetables through retail, wholesale and, in some instances, food service channels across the European marketplace.
A Glimpse at Dole PLC's Dividend History
Dole PLC has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Dole PLC's Dividend Yield and Growth
As of today, Dole PLC currently has a 12-month trailing dividend yield of 2.62% and a 12-month forward dividend yield of 2.62%. This suggests an expectation of same dividend payments over the next 12 months. Based on Dole PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Dole PLC stock as of today is approximately 2.62%.
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, Dole PLC's dividend payout ratio is 0.22. Dole PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dole PLC's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Dole PLC'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 Dole PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dole PLC's revenue has increased by approximately 22.90% per year on average, a rate that outperforms approximately 85.4% 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, Dole PLC's earnings increased by approximately 28.80% per year on average, a rate that outperforms approximately 74.23% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 32.30%, which outperforms approximately 86.16% of global competitors.
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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.