Delving into the Dividend Dynamics of Coca-Cola Europacific Partners PLC
Coca-Cola Europacific Partners PLC (CCEP, Financial) recently announced a dividend of $1.17 per share, payable on 2023-12-05, with the ex-dividend date set for 2023-11-16. 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 Coca-Cola Europacific Partners PLC's dividend performance and assess its sustainability.
What Does Coca-Cola Europacific Partners PLC Do?
Coca-Cola Europacific Partners PLC is a bottling company that sells nonalcoholic ready-to-drink beverage products under the Coca-Cola brand in Europe. The company operates through one segment. It purchases concentrate and syrups from the primary licensor, the Coca-Cola Co., then produces, packages, and distributes the beverages to retailers. The current license allows the company to exclusively market, produce, and distribute Coca-Cola products within specified territories: Iberia, Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, Iceland, Germany, and Sweden. Sales of beverages in Iberia, Great Britain, Germany, and France make up the majority of the company's total sales volume and revenue.
A Glimpse at Coca-Cola Europacific Partners PLC's Dividend History
Coca-Cola Europacific Partners PLC has maintained a consistent dividend payment record since 1987. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Coca-Cola Europacific Partners PLC's Dividend Yield and Growth
As of today, Coca-Cola Europacific Partners PLC currently has a 12-month trailing dividend yield of 3.08% and a 12-month forward dividend yield of 3.18%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Coca-Cola Europacific Partners PLC's annual dividend growth rate was 10.70%. Based on Coca-Cola Europacific Partners PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Coca-Cola Europacific Partners PLC stock as of today is approximately 3.08%.
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 2023-06-30, Coca-Cola Europacific Partners PLC's dividend payout ratio is 0.49.
Coca-Cola Europacific Partners PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Coca-Cola Europacific Partners PLC's profitability 8 out of 10 as of 2023-06-30, 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. Coca-Cola Europacific Partners PLC'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 Coca-Cola Europacific Partners PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Coca-Cola Europacific Partners PLC's revenue has increased by approximately 13.90% per year on average, a rate that outperforms approximately 77.32% 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, Coca-Cola Europacific Partners PLC's earnings increased by approximately 10.20% per year on average, a rate that outperforms approximately 56.67% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 7.80%, which outperforms approximately 50.75% of global competitors.
With Coca-Cola Europacific Partners PLC's consistent dividend payments, robust dividend growth rate, prudent payout ratio, and strong profitability and growth metrics, the company stands as an attractive prospect for value investors seeking steady income streams. The combination of a solid track record and promising growth indicators bodes well for the sustainability of its dividends, making it a potential staple in income-focused portfolios. As investors consider their next steps, it's worth pondering: How will Coca-Cola Europacific Partners PLC's strategic initiatives and market position influence its dividend outlook in the years to come?
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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.
