In This Article:
Assessing the Sustainability and Growth of IOCJY's Dividends
Iochpe-Maxion SA (IOCJY) recently announced a dividend of $0.01 per share, payable on 2024-04-09, with the ex-dividend date set for 2024-03-15. 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 Iochpe-Maxion SA's dividend performance and assess its sustainability.
What Does Iochpe-Maxion SA Do?
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Iochpe-Maxion SA is a Brazilian company involved in the manufacturing of automobile parts. Its core business is the production of wheels and structural components for light and commercial vehicles and equipment for railways. The company is a world leader in the production of automotive wheels. It has nearly 30 manufacturing facilities located globally and has customers worldwide and operates through three divisions; Maxion Wheels, Maxion Structural Components, and Amsted-Maxion. Maxion Wheels produces and markets a wide range of steel wheels, Maxion Structural Components, we produce struts, sleepers, and chassis assembled for light vehicles and Amsted-Maxion produces freight wagons, railway wheels and castings.
A Glimpse at Iochpe-Maxion SA's Dividend History
Iochpe-Maxion SA has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Iochpe-Maxion SA's Dividend Yield and Growth
As of today, Iochpe-Maxion SA currently has a 12-month trailing dividend yield of 1.65% and a 12-month forward dividend yield of 2.14%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Iochpe-Maxion SA's annual dividend growth rate was -23.20%. Extended to a five-year horizon, this rate increased to -2.80% per year. And over the past decade, Iochpe-Maxion SA's annual dividends per share growth rate stands at 7.70%. Based on Iochpe-Maxion SA's dividend yield and five-year growth rate, the 5-year yield on cost of Iochpe-Maxion SA stock as of today is approximately 1.43%.
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, Iochpe-Maxion SA's dividend payout ratio is 0.66. Iochpe-Maxion SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Iochpe-Maxion SA's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.