Yahoo Finance Manila Water Co Inc's Dividend Analysis
Exploring the Dividend Future of Manila Water Co Inc
Manila Water Co Inc (MWTCF) recently announced a dividend of $1.13 per share, payable on 2024-04-12, with the ex-dividend date set for 2024-03-15. 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 Manila Water Co Inc's dividend performance and assess its sustainability.
What Does Manila Water Co Inc Do?
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Manila Water Co Inc is a water and wastewater management company. Its operations can be divided among Metro Manila East Zone and Manila Water Philippine Ventures, which operate across municipalities in the Philippines, and Manila Water Asia Pacific, which operates in Vietnam, Myanmar, and Indonesia. The segments of the company consist of Manila Concession and Head Office, Domestic Subsidiaries, and Foreign Subsidiaries. The Manila Concession and Head Office generate maximum revenue for the company.
A Glimpse at Manila Water Co Inc's Dividend History
Manila Water Co Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Manila Water Co Inc's Dividend Yield and Growth
As of today, Manila Water Co Inc currently has a 12-month trailing dividend yield of 2.65% and a 12-month forward dividend yield of 4.79%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Manila Water Co Inc's annual dividend growth rate was -25.30%. Based on Manila Water Co Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Manila Water Co Inc stock as of today is approximately 2.65%.
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 2023-09-30, Manila Water Co Inc's dividend payout ratio is 0.40. Manila Water Co Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Manila Water Co Inc's profitability 7 out of 10 as of 2023-09-30, 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. Manila Water Co Inc'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 Manila Water Co Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Manila Water Co Inc's revenue has increased by approximately -10.30% per year on average, a rate that underperforms than approximately 94.89% 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, Manila Water Co Inc's earnings increased by approximately -9.20% per year on average, a rate that underperforms than approximately 73.02% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -11.40%, which underperforms than approximately 84.59% of global competitors.
Next Steps
For value investors, the dividend profile of Manila Water Co Inc presents a mixed picture. While the company maintains a consistent dividend payment history and a reasonable payout ratio, its negative dividend growth rate and underperforming growth metrics raise questions about the long-term sustainability of its dividends. Value investors must weigh the current yield against potential risks and consider the company's ability to navigate through its growth challenges. With the insights provided, investors can make more informed decisions about the attractiveness of Manila Water Co Inc as a dividend investment. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find opportunities that align with their investment strategies.
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.
