Quebecor Inc's Dividend Analysis

GuruFocus Research

Wed, Nov 22, 2023, 3:11 AM 4 min read

Understanding Quebecor Inc's Upcoming Dividend Payout

Quebecor Inc (QBCRF) recently announced a dividend of $0.3 per share, payable on 2023-12-19, with the ex-dividend date set for 2023-11-22. 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 Quebecor Inc's dividend performance and assess its sustainability.

What Does Quebecor Inc Do?

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Quebecor primarily provides telecom services in Quebec, where it has roughly 1.7 million internet subscribersequating to a penetration rate of about 50% in its footprintand over 3 million mobile subscribers, including more than 20% wireless market share in Quebec. With the acquisition of Freedom Mobile in April 2023, Quebecor also has more than 1.5 million mobile subscribers in Ontario, British Columbia, and Alberta. Quebecor also offers a French-language subscription video on demand service and has a media segment that owns and operates television stations, publishes newspapers and magazines, and produces and distributes films and television shows. A very small portion of Quebecor's business engages in live event production and promotion and has ownership of live-event venues.

A Glimpse at Quebecor Inc's Dividend History

Quebecor Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Quebecor Inc's Dividend Yield and Growth

As of today, Quebecor Inc currently has a 12-month trailing dividend yield of 4.01% and a 12-month forward dividend yield of 3.91%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Quebecor Inc's annual dividend growth rate was 45.10%. Extended to a five-year horizon, this rate increased to 62.20% per year. And over the past decade, Quebecor Inc's annual dividends per share growth rate stands at an impressive 45.20%.

Based on Quebecor Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Quebecor Inc stock as of today is approximately 45.02%.

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 2023-09-30, Quebecor Inc's dividend payout ratio is 0.43.

Quebecor Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Quebecor Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Quebecor Inc'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 Quebecor Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Quebecor Inc's revenue has increased by approximately 4.70% per year on average, a rate that outperforms approximately 55.47% 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, Quebecor Inc's earnings increased by approximately 5.60% per year on average, a rate that outperforms approximately 52.27% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of 12.50%, which outperforms approximately 64.9% of global competitors.

Next Steps

In conclusion, Quebecor Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics collectively paint a picture of a company with a strong dividend profile. The consistency of dividend payments, combined with a notable growth rate and a sustainable payout ratio, positions Quebecor Inc favorably for value investors seeking reliable income streams. With robust profitability and growth metrics signaling a healthy financial future, Quebecor Inc appears well-equipped to maintain its dividend payments. Investors contemplating the addition of Quebecor Inc to their portfolios should consider these factors, and may benefit from using tools like the High Dividend Yield Screener available to GuruFocus Premium users for further analysis.

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.

This article first appeared on GuruFocus.

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