In This Article:
Exploring the Dividend Profile of Cochlear Ltd (CHEOY)
Cochlear Ltd (CHEOY) recently announced a dividend of $0.66 per share, payable on 2024-04-30, with the ex-dividend date set for 2024-03-21. 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 Cochlear Ltd's dividend performance and assess its sustainability.
What Does Cochlear Ltd Do?
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Cochlear Ltd is the leading cochlear implant device manufacturer with around 60% global market share. Developed markets contribute 80% of group revenue where cochlear implants are the standard of care for children with severe to profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2020, 49% of revenue came from the Americas, 35% from Europe, the Middle East, and Africa, and 16% from the Asia-Pacific segment.
A Glimpse at Cochlear Ltd's Dividend History
Cochlear Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cochlear Ltd's Dividend Yield and Growth
As of today, Cochlear Ltd currently has a 12-month trailing dividend yield of 1.00% and a 12-month forward dividend yield of 1.12%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Cochlear Ltd's annual dividend growth rate was 19.70%. Extended to a five-year horizon, this rate decreased to -0.80% per year. And over the past decade, Cochlear Ltd's annual dividends per share growth rate stands at -0.50%. Based on Cochlear Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Cochlear Ltd stock as of today is approximately 0.96%.
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, Cochlear Ltd's dividend payout ratio is 0.62.