In This Article:
Assessing the Upcoming Dividend and Historical Performance
Spirax-Sarco Engineering PLC (SPXSY) recently announced a dividend of $0.72 per share, payable on 2024-06-10, with the ex-dividend date set for 2024-04-25. 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 Spirax-Sarco Engineering PLCs dividend performance and assess its sustainability.
What Does Spirax-Sarco Engineering PLC Do?
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Spirax-Sarco is a global manufacturer of a wide range of applications for industrial and commercial steam systems, electric thermal solutions and peristaltic pumps used across multiple industries. The group operates across three segments and has over 110,000 direct customers across 130 countries. Approximately 85% of group sales are generated from recurring maintenance and small improvements to existing customer systems. Spirax-Sarco has 1,700 product lines and 2,100 sales and service engineers, who account for 25% of employees.
A Glimpse at Spirax-Sarco Engineering PLC's Dividend History
Spirax-Sarco Engineering PLC has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Spirax-Sarco Engineering PLC's Dividend Yield and Growth
As of today, Spirax-Sarco Engineering PLC currently has a 12-month trailing dividend yield of 1.68% and a 12-month forward dividend yield of 1.75%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Spirax-Sarco Engineering PLC's annual dividend growth rate was 11.70%. Extended to a five-year horizon, this rate decreased to 11.10% per year. And over the past decade, Spirax-Sarco Engineering PLC's annual dividends per share growth rate stands at an impressive 10.60%.
Based on Spirax-Sarco Engineering PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Spirax-Sarco Engineering PLC stock as of today is approximately 2.84%.
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, Spirax-Sarco Engineering PLC's dividend payout ratio is 0.49.