Decoding the Dividend Dynamics of Autoscope Technologies Corp (AATC, Financial)
Autoscope Technologies Corp (AATC), a leading provider of above-ground detection technology, recently announced a dividend of $0.13 per share, payable on 2023-10-09, with the ex-dividend date set for 2023-09-29. This announcement has sparked interest among investors, prompting a closer look at the company's dividend history, yield, and growth rates. In this article, we will leverage GuruFocus data to assess Autoscope Technologies Corp's dividend performance and its sustainability.
About Autoscope Technologies Corp
Autoscope Technologies Corp is committed to enhancing safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications, and solutions. The company provides Intelligent Transportation Systems professionals with precise and accurate information, including real-time reaction capabilities and in-depth analytics to support confident and proactive decision-making.
Autoscope Technologies Corp's Dividend History
Since 2021, Autoscope Technologies Corp has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. The following chart shows the company's annual Dividends Per Share for tracking historical trends.
Autoscope Technologies Corp's Dividend Yield and Growth
As of today, Autoscope Technologies Corp boasts a 12-month trailing dividend yield of 8.33% and a 12-month forward dividend yield of 8.66%. This suggests an expectation of increased dividend payments over the next 12 months. Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Autoscope Technologies Corp stock is approximately 8.33% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio reveals the proportion 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, Autoscope Technologies Corp's dividend payout ratio stands at 0.89, which may suggest potential concerns about the sustainability of the company's dividend.
Autoscope Technologies Corp's profitability rank offers insights into the company's earnings prowess relative to its peers. With a rank of 7 out of 10 as of 2023-06-30, the company demonstrates good profitability prospects, having reported net profit in 7 of the past 10 years.
Growth Metrics: A Look into the Future
For dividends to be sustainable, a company must exhibit robust growth metrics. Autoscope Technologies Corp's growth rank of 7 out of 10 suggests a positive growth trajectory relative to its competitors. However, the company's revenue per share and 3-year revenue growth rate indicate a slower growth pace compared to approximately 77.27% of global competitors. Similarly, the company's 3-year EPS growth rate and the 5-year EBITDA growth rate underperform compared to a significant proportion of global competitors.
Conclusion
While Autoscope Technologies Corp's consistent dividend payments and attractive yield are commendable, the company's high payout ratio and below-average growth metrics raise concerns about the sustainability of its dividends. Investors should consider these factors when making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
