Yahoo Finance Warehouse Group Ltd (The)'s Dividend Analysis
Assessing the Viability of WHGPF's Dividend Profile
Warehouse Group Ltd (The)(WHGPF) recently announced a dividend of $0.05 per share, payable on 2024-04-23, with the ex-dividend date set for 2024-04-05. 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 Warehouse Group Ltd (The)'s dividend performance and assess its sustainability.
What Does Warehouse Group Ltd (The) Do?
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Warehouse Group Ltd (The) is engaged in the retail sector. The company's operating segment includes Warehouse; Noel Leeming; Torpedo7; TheMarket and Other Group operations. It generates maximum revenue from the Warehouse Segment.
A Glimpse at Warehouse Group Ltd (The)'s Dividend History
Warehouse Group Ltd (The) 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 Warehouse Group Ltd (The)'s Dividend Yield and Growth
As of today, Warehouse Group Ltd (The) currently has a 12-month trailing dividend yield of 6.19% and a 12-month forward dividend yield of 10.00%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Warehouse Group Ltd (The)'s annual dividend growth rate was 7.70%. Based on Warehouse Group Ltd (The)'s dividend yield and five-year growth rate, the 5-year yield on cost of Warehouse Group Ltd (The) stock as of today is approximately 6.19%.
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 2024-01-31, Warehouse Group Ltd (The)'s dividend payout ratio is 0.62. Warehouse Group Ltd (The)'s profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Warehouse Group Ltd (The)'s profitability 7 out of 10 as of 2024-01-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Warehouse Group Ltd (The)'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 Warehouse Group Ltd (The)'s revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Warehouse Group Ltd (The)'s revenue has increased by approximately 2.30% per year on average, a rate that underperforms approximately 58.19% 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, Warehouse Group Ltd (The)'s earnings increased by approximately -23.00% per year on average, a rate that underperforms approximately 83.79% of global competitors.
Engaging Conclusion
Warehouse Group Ltd (The) presents a mixed picture for dividend investors. With a notable dividend yield and a history of consistent payments, the company stands as an attractive option for income-focused portfolios. However, the growth challenges reflected in its EPS performance may raise questions about long-term sustainability. As value investors, it is crucial to weigh the attractive yield against the potential risks associated with slower earnings growth. Will Warehouse Group Ltd (The) manage to navigate through these challenges and maintain its dividend attractiveness? Only time will tell. Meanwhile, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar or potentially better opportunities.
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.
