An In-depth Look at Klabin SA's Dividend Performance and Sustainability
Klabin SA (KLBAY, Financial) recently announced a dividend of $0.12 per share, payable on 2023-11-24, with the ex-dividend date set for 2023-11-03. 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 delve into Klabin SA's dividend performance and assess its sustainability.
What Does Klabin SA Do?
Klabin SA manufactures and sells timber, pulp, and a variety of paper products. It owns and operates forests in Brazil and harvests timber. The timber is either sold to third parties or transported to the firm's mills, which produce pulp and paper products. The firm organizes itself into four segments based on product type: forestry, paper, conversion, and pulp. The forestry segment involves operations related to planting and growing pine and eucalyptus trees and selling timber to third parties; the other segments involve the production and sale of paper products. The paper and pulp segments contribute heavily to the company's overall revenue. Klabin has a global presence.
A Glimpse at Klabin SA's Dividend History
Klabin SA has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Klabin SA's Dividend Yield and Growth
As of today, Klabin SA currently has a 12-month trailing dividend yield of 4.27% and a 12-month forward dividend yield of 5.45%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Klabin SA's annual dividend growth rate was 19.70%. Extended to a five-year horizon, this rate decreased to -2.80% per year. Based on Klabin SA's dividend yield and five-year growth rate, the 5-year yield on cost of Klabin SA stock as of today is approximately 3.70%.
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, Klabin SA's dividend payout ratio is 2.69. This may suggest that the company's dividend may not be sustainable.
Klabin SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Klabin SA's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Klabin SA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Klabin SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Klabin SA's revenue has increased by approximately 23.20% per year on average, a rate that outperforms approximately 87.55% 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, Klabin SA's earnings increased by approximately 85.00% per year on average, a rate that outperforms approximately 90.95% of global competitors.
Conclusion
In conclusion, Klabin SA's consistent dividend payments, impressive dividend growth rate, and low payout ratio underscore its commitment to returning value to shareholders. The company's strong profitability and impressive growth metrics further bolster the sustainability of its dividends. However, investors should continue to monitor Klabin SA's payout ratio and growth metrics to ensure the continued sustainability of its dividends.
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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.
