Exploring the Sustainability and Growth of Rogers Communications Inc's Dividends
Rogers Communications Inc (RCI, Financial) recently announced a dividend of $0.5 per share, payable on 2024-07-05, with the ex-dividend date set for 2024-06-10. 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 Rogers Communications Inc's dividend performance and assess its sustainability.
What Does Rogers Communications Inc Do?
Rogers Communications is the largest wireless service provider in Canada, with its more than 11 million subscribers equating to one third of the total Canadian market. Its wireless business accounted for more than half of total revenue and has increasingly been providing a bigger portion of total company sales over the last several years. Rogers' cable segment, which provides about 35% of total revenue after acquiring Shaw, offers home internet, television, and landline phone service to consumers and businesses. Remaining sales come from Rogers' media unit, which owns and operates various television and radio stations and the Toronto Blue Jays. Rogers' significant exposure to sports also includes ownership stakes in the Toronto Maple Leafs, Raptors, FC, and Argonauts.
A Glimpse at Rogers Communications Inc's Dividend History
Rogers Communications Inc has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Rogers Communications Inc has increased its dividend each year since 2004. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 20 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Rogers Communications Inc's Dividend Yield and Growth
As of today, Rogers Communications Inc currently has a 12-month trailing dividend yield of 3.81% and a 12-month forward dividend yield of 3.74%. This suggests an expectation of decrease in dividend payments over the next 12 months.
Extended to a five-year horizon, this rate increased to 0.60% per year. And over the past decade, Rogers Communications Inc's annual dividends per share growth rate stands at 1.20%.
Based on Rogers Communications Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Rogers Communications Inc stock as of today is approximately 3.92%.
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 2024-03-31, Rogers Communications Inc's dividend payout ratio is 0.45.
Rogers Communications Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Rogers Communications Inc's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. Rogers Communications Inc'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 Rogers Communications Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Rogers Communications Inc's revenue has increased by approximately 10.20% per year on average, a rate that outperforms approximately 72.6% 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, Rogers Communications Inc's earnings increased by approximately 11.00% per year on average, a rate that outperforms approximately 58.45% of global competitors.
Conclusion
Considering Rogers Communications Inc's consistent dividend growth, strong payout ratio, robust profitability, and solid growth metrics, the company appears well-positioned to continue rewarding its shareholders with reliable dividend payments. Investors seeking to diversify their portfolio with a stock that offers both stability and potential for appreciation might find Rogers Communications Inc an intriguing option. What are your thoughts on incorporating Rogers Communications Inc into your investment strategy?
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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.
