In This Article:
An In-Depth Look at Computershare Ltd's Upcoming Dividend and Financial Health
Computershare Ltd (CMSQY) recently announced a dividend of $0.4 per share, payable on 2024-03-21, 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 Computershare Ltd's dividend performance and assess its sustainability.
What Does Computershare Ltd Do?
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Founded in Australia in 1978, Computershare has grown via acquisitions to become the world's leading provider of issuer services. Employee share plans and communications services are commonly sold together with issuer services to corporations. The company also operates a retail mortgage administration business, alongside a business services business and a corporate trust business. Over the medium term, around half of group EBITDA is expected to be generated from interest income on client cash balances, or margin income, which is exposed to interest-rate movements.
A Glimpse at Computershare Ltd's Dividend History
Computershare 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 Computershare Ltd's Dividend Yield and Growth
As of today, Computershare Ltd currently has a 12-month trailing dividend yield of 4.10% and a 12-month forward dividend yield of 4.68%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Computershare Ltd's annual dividend growth rate was 11.70%. Extended to a five-year horizon, this rate decreased to 7.60% per year. And over the past decade, Computershare Ltd's annual dividends per share growth rate stands at 7.40%.
Based on Computershare Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Computershare Ltd stock as of today is approximately 5.91%.
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 2023-06-30, Computershare Ltd's dividend payout ratio is 0.82, which may suggest that the company's dividend may not be sustainable.