In This Article:
Assessing the Sustainability of Stolt-Nielsen Ltd's Upcoming Dividend
Stolt-Nielsen Ltd (SOIEF) recently announced a dividend of $1.5 per share, payable on 2024-05-08, with the ex-dividend date set for 2024-04-24. 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 Stolt-Nielsen Ltd's dividend performance and assess its sustainability.
What Does Stolt-Nielsen Ltd Do?
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Stolt-Nielsen Ltd is a transportation and logistics company domiciled in Bermuda. The company organizes itself into five business segments: tankers, tank containers, terminals, Stolt-Nielsen Gas, and Stolt Sea Farm. The Group generates the majority of its operating revenue through its tanker segment from the transportation of liquids by sea and inland waterways under contracts of affreightment or through contracts on the spot market. Geographically, the company generates a majority of its revenue from the United States and the rest from Belgium, Malaysia, China, and other regions.
A Glimpse at Stolt-Nielsen Ltd's Dividend History
Stolt-Nielsen Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Stolt-Nielsen Ltd's Dividend Yield and Growth
As of today, Stolt-Nielsen Ltd currently has a 12-month trailing dividend yield of 5.37% and a 12-month forward dividend yield of 7.16%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Stolt-Nielsen Ltd's annual dividend growth rate was 120.90%. Extended to a five-year horizon, this rate decreased to 46.80% per year. And over the past decade, Stolt-Nielsen Ltd's annual dividends per share growth rate stands at 6.00%.
Based on Stolt-Nielsen Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Stolt-Nielsen Ltd stock as of today is approximately 36.61%.
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 2024-02-29, Stolt-Nielsen Ltd's dividend payout ratio is 0.41.