An In-depth Look at the Upcoming Dividend and Historical Performance
Home Product Center PCL (HPCRF, Financial) recently announced a dividend of $0.22 per share, payable on 2024-05-08, with the ex-dividend date set for 2024-04-22. 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 Home Product Center PCL's dividend performance and assess its sustainability.
What Does Home Product Center PCL Do?
Home Product Center PCL is a Thailand-based company engaged in the sale of home improvement products under the HomePro brand which serves as a One Stop Shopping Home Center. It provides construction, extension, and renovation services in addition to the improvement of buildings, houses, and residences. The company operates in Thailand and Malaysia through its HomePro stores and subsidiaries. Maximum revenue is generated from contracts with customers and specifically through the hard-line product category. The hard-line merchandise category includes tools, paint, home improvement, bathroom and sanitary ware, kitchen, home appliances, and electrical equipment. Geographically, it generates the majority of its revenue from Thailand.
A Glimpse at Home Product Center PCL's Dividend History
Home Product Center PCL has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Home Product Center PCL's Dividend Yield and Growth
As of today, Home Product Center PCL currently has a 12-month trailing dividend yield of 4.11% and a 12-month forward dividend yield of 4.53%. This suggests an expectation of increased dividend payments over the next 12 months.
Home Product Center PCL's dividend yield of 4.11% is near a 10-year high and outperforms 64.82% of global competitors in the Retail - Cyclical industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Home Product Center PCL's annual dividend growth rate was 8.00%. Extended to a five-year horizon, this rate decreased to 2.50% per year. And over the past decade, Home Product Center PCL's annual dividends per share growth rate stands at an impressive 28.90%.
Based on Home Product Center PCL's dividend yield and five-year growth rate, the 5-year yield on cost of Home Product Center PCL stock as of today is approximately 4.65%.
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, Home Product Center PCL's dividend payout ratio is 0.85, which may suggest that the company's dividend may not be sustainable.
Home Product Center PCL's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Home Product Center PCL's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Home Product Center PCL'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 Home Product Center PCL's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Home Product Center PCL's revenue has increased by approximately 5.40% per year on average, outperforming approximately 50.1% 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, Home Product Center PCL's earnings increased by approximately 7.90% per year on average, outperforming approximately 46.21% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.00%, outperforms approximately 34.24% of global competitors.
Engaging Conclusion: The Verdict on Home Product Center PCL's Dividends
Considering Home Product Center PCL's consistent dividend history, attractive yield, and growth rates, the company presents itself as a compelling option for income-focused investors. However, the relatively high payout ratio may raise some concerns about dividend sustainability despite the company's strong profitability and growth metrics. Investors should weigh these factors and monitor the company's future earnings and cash flow to ensure that dividends can be maintained or potentially grow. As the ex-dividend date approaches, those interested in Home Product Center PCL's dividend prospects may consider the stock as a potential addition to their portfolios. For further analysis, 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.
