A Comprehensive Review of Kindred Group PLC's Dividend Performance and Sustainability
Kindred Group PLC(KNDGF, Financial) recently announced a dividend of $2.18 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-23. 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 Kindred Group PLC's dividend performance and assess its sustainability.
Introduction to Kindred Group PLC
Kindred Group PLC is an online gambling and gaming business that licenses online casino, poker, bingo, and sports betting. Its geographical reporting segments include the Nordics, Western Europe, Central, Eastern & Southern Europe, and Others. The company derives a majority of its revenue from Western Europe through gross winnings, betting duties, marketing revenue share, and other cost of sales. It operates through several different online brands, such as Unibet, Bingo.com, Maria Casino, and iGame. The Casino & Games products account for the most revenue, followed by Sports Betting, Poker, and Other.
Overview of Kindred Group PLC's Dividend History
Kindred Group PLC has maintained a consistent dividend payment record since 2021, distributing dividends on a bi-annual basis. The chart below provides a historical overview of the annual Dividends Per Share.
Insights on Kindred Group PLC's Dividend Yield and Growth
As of today, Kindred Group PLC has a 12-month trailing dividend yield of 4.33% and a 12-month forward dividend yield of 4.46%, indicating expectations of increased dividend payments over the next 12 months. However, over the past three years, Kindred Group PLC's annual dividend growth rate was -12.00%. Based on Kindred Group PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Kindred Group PLC stock as of today is approximately 4.33%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of Kindred Group PLC's dividend can be evaluated by examining its dividend payout ratio, which stands at 0.45 as of 2023-06-30. This 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. Furthermore, Kindred Group PLC's profitability rank of 9 out of 10 suggests strong profitability prospects, underpinned by a decade of consistent positive net income.
Kindred Group PLC's Growth Metrics: A Look at the Future
Kindred Group PLC's strong growth rank of 9 out of 10, combined with its solid revenue per share and 3-year revenue growth rate of 7.20%, indicates a robust revenue model. Additionally, the company's 3-year EPS growth rate of 30.60% and 5-year EBITDA growth rate of 13.50% demonstrate its ability to grow earnings, a crucial factor for sustaining dividends in the long run.
Conclusion
In conclusion, while Kindred Group PLC's dividend growth rate has been negative in the past three years, its strong profitability and growth metrics, combined with a low payout ratio, suggest a potential for future dividend growth. However, investors should continue to monitor the company's financial performance and industry trends to make informed investment decisions. 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.
