Exploring the Sustainability of Sleep Country Canada Holdings Inc's Dividend
Sleep Country Canada Holdings Inc (SCCAF, Financial) recently announced a dividend of $0.24 per share, payable on 2024-02-29, 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 Sleep Country Canada Holdings Inc's dividend performance and assess its sustainability.
What Does Sleep Country Canada Holdings Inc Do?
Sleep Country Canada Holdings Inc is engaged in the retail of mattresses. It operates in the retail marketplace, offering mattresses and bedding-related products. The company operates in three segments: Sleep Country/Dormez-vous, Endy, and Hush. The company sells bedding products such as bed frames, pillows, mattress pads, sheets, duvets, headboards, and footboards under brands like Sealy, Serta, Simmons, Kingsdown, Contour Collection, Tempur-Pedic, iComfort, Sunset Collection, Dormeo Octaspring, and Natura. The company operates only in Canada.
A Glimpse at Sleep Country Canada Holdings Inc's Dividend History
Sleep Country Canada Holdings Inc has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sleep Country Canada Holdings Inc's Dividend Yield and Growth
As of today, Sleep Country Canada Holdings Inc currently has a 12-month trailing dividend yield of 3.58% and a 12-month forward dividend yield of 3.69%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Sleep Country Canada Holdings Inc's annual dividend growth rate was 2.90%. Extended to a five-year horizon, this rate decreased to 2.60% per year. Based on Sleep Country Canada Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Sleep Country Canada 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 2023-09-30, Sleep Country Canada Holdings Inc's dividend payout ratio is 0.36.
Sleep Country Canada Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sleep Country Canada Holdings Inc's profitability 7 out of 10 as of 2023-09-30, 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. Sleep Country Canada Holdings Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Sleep Country Canada Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sleep Country Canada Holdings Inc's revenue has increased by approximately 9.90% per year on average, a rate that outperforms approximately 66.89% 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, Sleep Country Canada Holdings Inc's earnings increased by approximately 24.10% per year on average, a rate that outperforms approximately 67.15% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.90%, which outperforms approximately 62.48% of global competitors.
Conclusion: The Dividend Perspective on Sleep Country Canada Holdings Inc
In conclusion, Sleep Country Canada Holdings Inc's consistent dividend payments, modest growth rate, manageable payout ratio, and solid profitability and growth metrics paint a picture of a company with a sustainable dividend policy. These factors are key for value investors seeking reliable income streams from their investments. With the company's next dividend on the horizon, investors should consider the long-term prospects that Sleep Country Canada Holdings Inc presents. Will the company continue to provide a comfortable financial cushion for its shareholders? That remains an important consideration for investors evaluating the stock's potential for their portfolios.
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.
