Assessing the Upcoming Dividend and Financial Health of Energizer Holdings Inc
Energizer Holdings Inc (ENR, Financial) recently announced a dividend of $0.3 per share, payable on 2024-03-14, with the ex-dividend date set for 2024-02-20. 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 Energizer Holdings Inc's dividend performance and assess its sustainability.
What Does Energizer Holdings Inc Do?
Energizer Holdings Inc makes and distributes household batteries, specialty batteries, and lighting products. Energizer offers batteries using lithium, alkaline, carbon-zinc, nickel-metal hydride, zinc-air, and silver oxide technologies. These products are sold under the Energizer, Rayovac, Varta, and Eveready brands at performance and premium price segments. It also offers auto care products in the appearance, fragrance, performance, and air conditioning recharge product categories. The company operates in two geographical segments: Americas and International, with the majority of its revenue derived from the Americas segment.
A Glimpse at Energizer Holdings Inc's Dividend History
Energizer Holdings Inc has maintained a consistent dividend payment record since 2015, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Energizer Holdings Inc's Dividend Yield and Growth
As of today, Energizer Holdings Inc currently has a 12-month trailing dividend yield of 3.97% and a 12-month forward dividend yield of 3.97%, suggesting an expectation of the same dividend payments over the next 12 months. Extended to a five-year horizon, this rate increased to 0.50% per year. Based on Energizer Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Energizer Holdings Inc stock as of today is approximately 4.07%.
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, Energizer Holdings Inc's dividend payout ratio is 0.40.
Energizer Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Energizer Holdings Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 7 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. Energizer Holdings Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Energizer Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Energizer Holdings Inc's revenue has increased by approximately 1.20% per year on average, a rate that underperforms approximately 70.71% 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, Energizer Holdings Inc's earnings increased by approximately 10.20% per year on average, a rate that underperforms approximately 52.37% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 0.20%, which underperforms approximately 68.25% of global competitors, also warrants attention.
Next Steps
In conclusion, while Energizer Holdings Inc's dividend payments and yield on cost offer an attractive proposition for income-focused investors, the company's moderate growth rates and competitive challenges highlight the importance of a balanced investment approach. The dividend's sustainability is supported by a reasonable payout ratio and a decent profitability rank, yet the underperformance in revenue and earnings growth compared to peers suggests that investors should keep a close eye on the company's future growth strategies and market dynamics. Will Energizer Holdings Inc's dividends continue to be a beacon for value investors, or will the need for reinvestment in innovation and market expansion take precedence? For investors seeking to diversify their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover more opportunities.
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.
