Natura &Co Holding SA's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of Natura &Co Holding SA (NTCOY)
Natura &Co Holding SA (NTCOY) recently announced a dividend of $0.01 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-04-09. 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 Natura &Co Holding SA's dividend performance and assess its sustainability.
What Does Natura &Co Holding SA Do?
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Natura &Co Holding SA is a multinational cosmetics, hygiene, and beauty company. It operates in Asia, Europe, North America, Oceania, and Brazil under the Natura, The Body Shop, and Aesop brand names. It has four operating segments. Natura & Co LATAM segment includes all operations under Natura, Avon, Aesop, and The Body Shop brands located in Brazil and Latin America, which account for a majority portion of operating revenues; Avon International segment includes all operations under Avon brand, The Body Shop International segment includes all operations under The Body Shop brand, and Aesop International segment includes all operations under Aesop brand.
A Glimpse at Natura &Co Holding SA's Dividend History
Natura &Co Holding SA has maintained a consistent dividend payment record since its inception. Dividends are currently distributed on a yearly basis. However, the company's history of dividend growth is not available due to insufficient data. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Natura &Co Holding SA's Dividend Yield and Growth
As of today, Natura &Co Holding SA currently has a 12-month trailing dividend yield of 4.08% and a 12-month forward dividend yield of 4.24%. This suggests an expectation of increased dividend payments over the next 12 months.
Natura &Co Holding SA's dividend yield of 4.08% is near a 10-year high and outperforms 76.67% of global competitors in the Consumer Packaged Goods industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Natura &Co Holding SA's dividend yield and five-year growth rate, the 5-year yield on cost of Natura &Co Holding SA stock as of today is approximately 4.08%.
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, Natura &Co Holding SA's dividend payout ratio is not applicable due to insufficient earnings data.
Natura &Co Holding SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Natura &Co Holding SA's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 4 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. Natura &Co Holding SA'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 Natura &Co Holding SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Natura &Co Holding SA's revenue has increased by approximately 17.00% per year on average, a rate that outperforms approximately 76.27% of global competitors.
Engaging Conclusion
In conclusion, Natura &Co Holding SA's dividend appears to be an attractive feature for income-focused investors, particularly when considering the company's high dividend yield and solid growth prospects. While the dividend payout ratio is currently not applicable, the company's profitability and revenue growth provide a positive outlook for future dividend sustainability. Investors should continue to monitor these metrics to ensure that the dividends remain a viable part of their investment thesis. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener for further research and analysis.
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.