Understanding Ayala Land Inc's Upcoming Dividend Payout
Ayala Land Inc (AYAAF, Financial) recently announced a dividend of $0.21 per share, payable on 2024-03-21, with the ex-dividend date set for 2024-03-04. 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 Ayala Land Inc's dividend performance and assess its sustainability.
What Does Ayala Land Inc Do?
Ayala Land is a real estate conglomerate operating in the Philippines that plans and develops large-scale, integrated estates. Ayala Land develops commercial and industrial parks and engages in property management and construction. The company operates in seven business segments: Property Development; International; Shopping Centers; Offices; Hotels and Resorts; Construction; Property Management and Others. The majority of revenue gets derived from the Property development segment that engages in the sale of high-end and upper-middle-income residential lots and units, affordable housing units and lots, economic housing, and leisure community developments.
A Glimpse at Ayala Land Inc's Dividend History
Ayala Land Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ayala Land Inc's Dividend Yield and Growth
As of today, Ayala Land Inc currently has a 12-month trailing dividend yield of 1.03% and a 12-month forward dividend yield of 1.11%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Ayala Land Inc's annual dividend growth rate was -19.50%. Extended to a five-year horizon, this rate increased to -14.20% per year. And over the past decade, Ayala Land Inc's annual dividends per share growth rate stands at 0.10%.
Based on Ayala Land Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Ayala Land Inc stock as of today is approximately 0.48%.
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, Ayala Land Inc's dividend payout ratio is 0.14.
Ayala Land Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Ayala Land Inc's profitability 7 out of 10 as of 2023-09-30, 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. Ayala Land 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 Ayala Land Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Ayala Land Inc's revenue has increased by approximately -9.50% per year on average, a rate that underperforms approximately 74.66% 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, Ayala Land Inc's earnings increased by approximately -17.80% per year on average, a rate that underperforms approximately 74.36% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -15.00%, which underperforms approximately 81.5% of global competitors.
Investor Considerations for Ayala Land Inc's Dividends
In conclusion, while Ayala Land Inc's recent dividend announcement is a positive sign for income-focused investors, the company's historical dividend growth rates and current payout ratio indicate a cautious approach towards its dividend policy. The profitability rank denotes a strong earnings base, which is fundamental for dividend sustainability. However, the growth metrics present a mixed picture, suggesting that while Ayala Land Inc maintains a solid market position, investors should keep an eye on its growth rates relative to industry peers. As the real estate market faces global economic shifts, Ayala Land Inc's strategic initiatives and adaptability will be key factors in maintaining and potentially increasing its dividend payments in the future.
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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.
