Stolt-Nielsen Ltd's Dividend Analysis
Assessing the Sustainability of Stolt-Nielsen Ltd's Upcoming Dividend
Stolt-Nielsen Ltd (SOIEF) recently announced a dividend of $1.5 per share, payable on 2024-05-08, with the ex-dividend date set for 2024-04-24. 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 Stolt-Nielsen Ltd's dividend performance and assess its sustainability.
What Does Stolt-Nielsen Ltd Do?
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Stolt-Nielsen Ltd is a transportation and logistics company domiciled in Bermuda. The company organizes itself into five business segments: tankers, tank containers, terminals, Stolt-Nielsen Gas, and Stolt Sea Farm. The Group generates the majority of its operating revenue through its tanker segment from the transportation of liquids by sea and inland waterways under contracts of affreightment or through contracts on the spot market. Geographically, the company generates a majority of its revenue from the United States and the rest from Belgium, Malaysia, China, and other regions.
A Glimpse at Stolt-Nielsen Ltd's Dividend History
Stolt-Nielsen Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Stolt-Nielsen Ltd's Dividend Yield and Growth
As of today, Stolt-Nielsen Ltd currently has a 12-month trailing dividend yield of 5.37% and a 12-month forward dividend yield of 7.16%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Stolt-Nielsen Ltd's annual dividend growth rate was 120.90%. Extended to a five-year horizon, this rate decreased to 46.80% per year. And over the past decade, Stolt-Nielsen Ltd's annual dividends per share growth rate stands at 6.00%.
Based on Stolt-Nielsen Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Stolt-Nielsen Ltd stock as of today is approximately 36.61%.
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 2024-02-29, Stolt-Nielsen Ltd's dividend payout ratio is 0.41.
Stolt-Nielsen Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Stolt-Nielsen Ltd's profitability 8 out of 10 as of 2024-02-29, 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. Stolt-Nielsen Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Stolt-Nielsen Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Stolt-Nielsen Ltd's revenue has increased by approximately 25.70% per year on average, a rate that outperforms approximately 83.04% 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, Stolt-Nielsen Ltd's earnings increased by approximately 97.80% per year on average, outperforming approximately 92.45% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 62.60%, which outperforms approximately 93.46% of global competitors, indicates a strong earnings before interest, taxes, depreciation, and amortization growth.
Conclusion: Evaluating Stolt-Nielsen Ltd's Dividend Future
With a solid track record of dividend payments, a robust yield on cost, and a commendable payout ratio, Stolt-Nielsen Ltd stands as a potentially attractive option for value investors focused on income generation. The company's strong profitability and growth metrics bode well for the sustainability of its dividends, making it a noteworthy consideration for dividend portfolios. As we anticipate the next dividend payment, one may ponder: How will Stolt-Nielsen Ltd continue to navigate the dynamic shipping and logistics industry to maintain its dividend attractiveness? For value investors seeking high-dividend yield opportunities, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment options.
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.