Assessing the Sustainability and Growth of Albany International Corp's Dividends
Albany International Corp(AIN, Financial) recently announced a dividend of $0.26 per share, payable on 2024-01-08, with the ex-dividend date set for 2023-12-18. 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 Albany International Corp's dividend performance and assess its sustainability.
What Does Albany International Corp Do?
Albany International Corp is principally engaged in processing textiles and materials. The company consists of two business segments, the machine clothing segment, which produces and provides custom-designed fabrics and belts for the production in the paper, nonwovens, and other process industries; and the Albany engineered composites segment, which offers engineered composite parts for the aerospace and defense industries. The machine clothing segment contributes to the majority of the company's total revenue. Albany International Corp has a global operation and generates revenue from the United States, Switzerland, Brazil, China, Mexico, France, and other areas.
A Glimpse at Albany International Corp's Dividend History
Albany International Corp has maintained a consistent dividend payment record since 2001. Dividends are currently distributed on a quarterly basis. Albany International Corp has increased its dividend each year since 2001, earning it the title of a dividend achiever, a prestigious recognition for companies that have increased their dividend each year for at least the past 22 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Albany International Corp's Dividend Yield and Growth
As of today, Albany International Corp currently has a 12-month trailing dividend yield of 1.05% and a 12-month forward dividend yield of 1.09%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Albany International Corp's annual dividend growth rate was 6.40%. Extended to a five-year horizon, this rate decreased to 5.40% per year. And over the past decade, Albany International Corp's annual dividends per share growth rate stands at 4.10%. Based on Albany International Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Albany International Corp stock as of today is approximately 1.37%.
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, Albany International Corp's dividend payout ratio is 0.32. Albany International Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Albany International Corp's profitability 8 out of 10 as of 2023-09-30, 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. Albany International Corp'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 Albany International Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Albany International Corp's revenue has increased by approximately 0.30% per year on average, a rate that underperforms approximately 58.63% 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, Albany International Corp's earnings increased by approximately -11.60% per year on average, a rate that underperforms approximately 75.94% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 12.90%, which underperforms approximately 38.8% of global competitors.
Next Steps
In conclusion, Albany International Corp's consistent dividend payments and status as a dividend achiever reflect a strong commitment to shareholder returns. The company's manageable payout ratio and solid profitability rank indicate that its dividend is sustainable. However, investors should also consider the company's growth metrics, which show mixed performance relative to global competitors. While revenue growth appears stable, earnings and EBITDA growth rates suggest there may be challenges ahead. Value investors should weigh these factors carefully when considering Albany International Corp as a potential addition to their dividend portfolios. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
