An In-depth Look at OC Oerlikon Corp AG, Pfaffikon's Dividend Sustainability
OC Oerlikon Corp AG, Pfaffikon (OERLF, Financial) recently announced a dividend of $0.2 per share, payable on 2024-03-27, with the ex-dividend date set for 2024-03-25. 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 OC Oerlikon Corp AG, Pfaffikon's dividend performance and assess its sustainability.
What Does OC Oerlikon Corp AG, Pfaffikon Do?
OC Oerlikon Corp AG, Pfaffikon specializes in engineering protective coatings for precision tools and components, as well as equipment for textile production. The company operates through two segments: Surface Solutions Division and Polymer Processing Solutions Division, with the former being the primary revenue generator. The Surface Solution Division is recognized as a leading supplier of materials and surface technologies for components and tools used in diverse industrial applications that demand superior materials and surface performance.
A Glimpse at OC Oerlikon Corp AG, Pfaffikon's Dividend History
OC Oerlikon Corp AG, Pfaffikon has upheld a consistent dividend payment track record since 2018, with dividends being distributed annually. Below is a chart illustrating the annual Dividends Per Share to help track historical trends.
Breaking Down OC Oerlikon Corp AG, Pfaffikon's Dividend Yield and Growth
As of today, OC Oerlikon Corp AG, Pfaffikon boasts a 12-month trailing dividend yield of 11.37% and a 12-month forward dividend yield of 6.76%, indicating an expected decrease in dividend payments over the next 12 months. Over a five-year period, this rate has decreased to -8.60% per year. Additionally, the 5-year yield on cost for OC Oerlikon Corp AG, Pfaffikon stock is approximately 7.25%.
The Sustainability Question: Payout Ratio and Profitability
To gauge the sustainability of its dividends, we look at OC Oerlikon Corp AG, Pfaffikon's dividend payout ratio, which stands at 3.70 as of 2023-12-31. This low ratio may suggest that the company's dividend could be at risk. The profitability rank of OC Oerlikon Corp AG, Pfaffikon is 6 out of 10, reflecting fair profitability, with the company reporting net profit in 8 out of the past 10 years.
Growth Metrics: The Future Outlook
OC Oerlikon Corp AG, Pfaffikon's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of 6.50%. However, this growth underperforms approximately 53.18% of global competitors. The 3-year EPS growth rate and the 5-year EBITDA growth rate further underline the company's performance, albeit lagging behind many global competitors.
Concluding Outlook on OC Oerlikon Corp AG, Pfaffikon's Dividends
In conclusion, while OC Oerlikon Corp AG, Pfaffikon presents a high trailing dividend yield and a commendable history of dividend payments, the anticipated decrease in dividend payments, the low payout ratio, and underwhelming growth metrics raise questions about the long-term sustainability of its dividends. Investors should closely monitor the company's future profitability and growth potential when considering the stock for its dividend prospects. For those seeking high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to aid in the search for potential investments.
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.
