In This Article:
Understanding the Dividend Prospects of Wilmar International Ltd
Wilmar International Ltd (WLMIF) recently announced a dividend of $0.11 per share, payable on 2024-05-14, with the ex-dividend date set for 2024-04-29. 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 Wilmar International Ltd's dividend performance and assess its sustainability.
What Does Wilmar International Ltd Do?
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Wilmar International Ltd is a processor of palm and lauric oils and a producer of consumer pack edible oils. Its operating segment includes Food Products; Feed and Industrial Products; Plantation and Sugar Milling, Associates and Joint Ventures and others. The company generates maximum revenue from the Feed and Industrial Products segment. Its Feed and Industrial Products segment comprises the processing, merchandising, and distribution of products, which includes animal feeds, non-edible palm and lauric products, agricultural commodities, oleochemicals, gas oil, and biodiesel. Geographically, it derives a majority of revenue from the People's Republic of China.
A Glimpse at Wilmar International Ltd's Dividend History
Wilmar International Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Wilmar International Ltd's Dividend Yield and Growth
As of today, Wilmar International Ltd currently has a 12-month trailing dividend yield of 5.14% and a 12-month forward dividend yield of 5.11%. This suggests an expectation of stable dividend payments over the next 12 months. Over the past three years, Wilmar International Ltd's annual dividend growth rate was 9.10%. Extended to a five-year horizon, this rate increased to 11.40% per year. And over the past decade, Wilmar International Ltd's annual dividends per share growth rate stands at an impressive 10.80%.
Based on Wilmar International Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Wilmar International Ltd stock as of today is approximately 8.82%.
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, Wilmar International Ltd's dividend payout ratio is 0.52.