In This Article:
Assessing the Sustainability of Weg SA's Upcoming Dividend
Weg SA (WEGZY) recently announced a dividend of $0.01 per share, payable on 2024-08-21, with the ex-dividend date set for 2024-03-28. 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 Weg SA's dividend performance and assess its sustainability.
What Does Weg SA Do?
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Weg SA produces and sells electric motors, generators, control systems, and other industrial devices worldwide. The company has three reportable segments: industry, energy, and foreign (outside of Brazil). The industry segment manufactures various motors, drives, controls, and equipment for industrial automation. Energy products primarily consist of electricity generators for power plants, turbines, control systems, and transformers to aid distributed energy systems and solutions.
A Glimpse at Weg SA's Dividend History
Weg SA has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Weg SA's Dividend Yield and Growth
As of today, Weg SA currently has a 12-month trailing dividend yield of 1.52% and a 12-month forward dividend yield of 1.29%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Weg SA's annual dividend growth rate was 66.60%. Extended to a five-year horizon, this rate decreased to 43.80% per year. And over the past decade, Weg SA's annual dividends per share growth rate stands at an impressive 20.40%.
Based on Weg SA's dividend yield and five-year growth rate, the 5-year yield on cost of Weg SA stock as of today is approximately 9.35%.
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, Weg SA's dividend payout ratio is 0.45.
Weg SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Weg SA's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.