Assessing the Sustainability and Growth of DuPont de Nemours Inc's Dividends
DuPont de Nemours Inc (DD, Financial) recently announced a dividend of $0.38 per share, payable on 2024-03-15, with the ex-dividend date set for 2024-02-28. 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 DuPont de Nemours Inc's dividend performance and assess its sustainability.
What Does DuPont de Nemours Inc Do?
DuPont is a diversified global specialty chemicals company created in 2019 as a result of the DowDuPont merger and subsequent separations. Its portfolio includes specialty chemicals and downstream products that serve the electronics and communication, automotive, construction, safety and protection, and water management industries. DuPont benefits from the ability to produce patented specialty chemicals that command pricing power. Noteworthy products include Kevlar, Tyvek, and Nomex, which have evolved over time to enable a wide range of applications across multiple industries.
A Glimpse at DuPont de Nemours Inc's Dividend History
DuPont de Nemours Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down DuPont de Nemours Inc's Dividend Yield and Growth
As of today, DuPont de Nemours Inc currently has a 12-month trailing dividend yield of 2.06% and a 12-month forward dividend yield of 2.17%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, DuPont de Nemours Inc's annual dividend growth rate was 6.30%. Extended to a five-year horizon, this rate decreased to -18.70% per year. And over the past decade, DuPont de Nemours Inc's annual dividends per share growth rate stands at -15.30%.
Based on DuPont de Nemours Inc's dividend yield and five-year growth rate, the 5-year yield on cost of DuPont de Nemours Inc stock as of today is approximately 0.73%.
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 2023-12-31, DuPont de Nemours Inc's dividend payout ratio is 0.49.
DuPont de Nemours Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks DuPont de Nemours Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. DuPont de Nemours Inc'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 DuPont de Nemours Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. DuPont de Nemours Inc's revenue has increased by approximately 11.10% per year on average, a rate that outperforms approximately 54.82% 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, DuPont de Nemours Inc's earnings increased by approximately 124.90% per year on average, a rate that outperforms approximately 96.27% of global competitors.
Engaging Conclusion: DuPont de Nemours Inc's Dividend Outlook
Considering DuPont de Nemours Inc's stable dividend history, current yield projections, and growth rates, the company presents an appealing case for investors seeking regular income. The sustainability of its dividends is supported by a reasonable payout ratio and solid profitability metrics. Growth indicators, such as revenue and EPS growth rates, offer additional confidence in the company's ability to maintain and potentially increase its dividends. As DuPont de Nemours Inc continues to leverage its specialty products and market position, investors may find it to be a valuable addition to their dividend-focused portfolios. Will DuPont de Nemours Inc's dividends continue to be a beacon of consistency for value investors? Only time will tell, but the indicators are promising.
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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.
