Yahoo Finance Finning International Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of FINGF
Finning International Inc (FINGF) recently announced a dividend of $0.25 per share, payable on 2024-03-07, with the ex-dividend date set for 2024-02-21. 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 Finning International Inc's dividend performance and assess its sustainability.
What Does Finning International Inc Do?
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Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company sells and rents Caterpillar machinery to the mining, construction, petroleum, forestry, and power system application industries. Finning International further provides parts and services for equipment and engines to its customers via its owned distribution network and buys and sells used equipment domestically and internationally after reconditioning or rebuilding the machinery. The company operates in Canada, South America, UK and Ireland, and others.
A Glimpse at Finning International Inc's Dividend History
Finning International Inc has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis.
Finning International Inc has increased its dividend each year since 2007. 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 17 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Finning International Inc's Dividend Yield and Growth
As of today, Finning International Inc currently has a 12-month trailing dividend yield of 2.76% and a 12-month forward dividend yield of 2.81%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Finning International Inc's annual dividend growth rate was 6.30%. Extended to a five-year horizon, this rate decreased to 4.60% per year. And over the past decade, Finning International Inc's annual dividends per share growth rate stands at 4.20%.
Based on Finning International Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Finning International Inc stock as of today is approximately 3.46%.
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 2023-12-31, Finning International Inc's dividend payout ratio is 0.27.
Finning International Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Finning International Inc's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Finning International Inc'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 Finning International Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Finning International Inc's revenue has increased by approximately 23.10% per year on average, a rate that outperforms approximately 86.62% 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, Finning International Inc's earnings increased by approximately 30.30% per year on average, a rate that outperforms approximately 62.71% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 21.80%, which outperforms approximately 67.44% of global competitors.
Investor Considerations for Finning International Inc's Dividends
In conclusion, Finning International Inc's upcoming dividend, consistent dividend growth, and a modest payout ratio reflect a dividend policy that supports shareholder returns while maintaining room for reinvestment and growth. With a strong profitability rank and robust growth metrics, Finning International Inc appears well-positioned to sustain its dividend payments. Investors seeking income and growth may find Finning International Inc an attractive option to explore further. Will Finning International Inc continue to deliver shareholder value through dividends and growth? This question remains central to the investment thesis for potential and current shareholders alike.
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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.
