A comprehensive analysis of A-Mark Precious Metals Inc's dividend history, yield, growth rate and sustainability
A-Mark Precious Metals Inc (AMRK, Financial) recently announced a dividend of $0.2 per share, payable on 2023-10-24, with the ex-dividend date set for 2023-10-06. 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 deep dive into A-Mark Precious Metals Inc's dividend performance and assess its sustainability.
Company Overview
A-Mark Precious Metals Inc is a precious metal trading company. It is principally engaged in the wholesale of gold, silver, platinum, and palladium bullion and related products in the form of bars, wafers, coins, and grains. The company's operating segment includes Wholesale Trading and Ancillary Services; Secured Lending and Direct Sales. It generates maximum revenue from the Wholesale Trading and Ancillary Services segment. Geographically, it derives a majority of its revenue from the United States.
Dividend History
A-Mark Precious Metals Inc has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dividend Yield and Growth
As of today, A-Mark Precious Metals Inc currently has a 12-month trailing dividend yield of 2.79% and a 12-month forward dividend yield of 2.79%. This suggests an expectation of same dividend payments over the next 12 months.
Based on A-Mark Precious Metals Inc's dividend yield and five-year growth rate, the 5-year yield on cost of A-Mark Precious Metals Inc stock as of today is approximately 2.79%.
Dividend Sustainability Analysis
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 2023-06-30, A-Mark Precious Metals Inc's dividend payout ratio is 0.09.
A-Mark Precious Metals Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks A-Mark Precious Metals Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. A-Mark Precious Metals Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and A-Mark Precious Metals Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. A-Mark Precious Metals Inc's revenue has increased by approximately -0.80% per year on average, a rate that underperforms than approximately 66.96% 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, A-Mark Precious Metals Inc's earnings increased by approximately 43.30% per year on average, a rate that underperforms than approximately 20.77% of global competitors.
Conclusion
With a consistent dividend payment record, a fair profitability rank, and robust growth metrics, A-Mark Precious Metals Inc presents an appealing investment opportunity for dividend investors. However, it is essential to keep an eye on the company's earnings growth and payout ratio to ensure the sustainability of its dividends. As always, investors are advised to conduct their due diligence before making investment decisions.
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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.
