Insights into future dividends and past performance
Carpenter Technology Corp (NYSE:CRS) recently announced a dividend of $0.2 per share, payable on June 6, 2024, with an ex-dividend date of April 22, 2024. The company's dividend history, yield, and growth rate are also in focus as investors look forward to future payouts. Let's examine Carpenter Technology Corp's dividend history and assess its sustainability using data from GuruFocus.
What does Carpenter Technology Corp do?
Carpenter Technology Corp. supplies specialty metals to a variety of end markets, including aerospace and defense, industrial machinery and consumer durables, medical, and energy. The company's segments include specialty alloys business and performance engineering products. Generate maximum revenue from the Specialty Alloys division. The SAO segment consists of the company's primary high-grade alloy and stainless steel manufacturing operations. This includes operations conducted primarily at plants located in Reading and Latrobe, Pennsylvania, and the surrounding areas, as well as South Carolina and Alabama.
A glimpse at Carpenter Technology Corp's dividend history
Carpenter Technology Corp has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis.
Carpenter Technology Corp. has increased its dividend every year since 2004. As such, the stock is listed as a Dividend Achiever, an honor bestowed on companies that have increased their dividends every year for at least the past 20 years. Below is a graph showing his annual dividend per share to track historical trends.
Analyzing Carpenter Technology Corp's dividend yield and growth rate
As of today, Carpenter Technology's 12-month forward dividend yield is 1.03%, and the 12-month forward dividend yield is 1.03%. This suggests that the same dividend payments are expected over the next 12 months.
Carpenter Technology's dividend yield of 1.03% is near the lowest in a decade and lower than the 69.22% of its global competitors in the industrial products industry, making the company's dividend yield an attractive proposition for income investors. suggests that it is possible.
When extended to a five-year period, this rate increased to 1.50% per year. Carpenter Technology's annual dividend growth rate per share over the past 10 years was 1.50%.
Based on Carpenter Technology Corp's dividend yield and 5-year growth rate, Carpenter Technology Corp stock has a 5-year cost yield of approximately 1.11% as of today.
Questions about sustainability: Dividend payout ratio and profitability
To assess dividend sustainability, you need to evaluate a company's payout ratio. Dividend payout ratio helps determine the proportion of a company's profits that it distributes as dividends. A low ratio indicates that the company is retaining a significant portion of its earnings, thereby ensuring that it has funds for future growth or unexpected economic downturns. As of December 31, 2023, Carpenter Technology Corp's dividend payout ratio is 0.28.
Carpenter Technology Corp's Profitability Rank helps you understand the company's profitability compared to its peers. GuruFocus ranks Carpenter Technology Corp's profitability at 6 out of 10 as of December 31, 2023, suggesting fair profitability. The company has posted a net profit in eight of the past 10 years.
Growth indicators: future outlook
To ensure dividend sustainability, companies must have solid growth metrics. Carpenter Technology Corp's Growth Rank of 6 out of 10 suggests that the company has decent growth prospects.
Earnings are the lifeblood of any company, and Carpenter Technology's earnings per share combined with its three-year earnings growth rate suggest a strong earnings model. Carpenter Technology Corp's revenue grows at an average annual growth rate of around 4.60%, which is lower than around 60.83% of its global competitors.
The company's three-year EPS growth rate indicates its ability to grow earnings, which is a key factor in maintaining a dividend over the long term. Over the past three years, Carpenter Technology Corp's revenue has grown at an average annual rate of -21.50%, which was lower than around 84.97% of its global competitors.
Attractive conclusion: Carpenter Technology Corp's dividend outlook
When considering the future of Carpenter Technology's dividend, investors should weigh the company's history of consistent dividend payments against the current yield situation and growth metrics. While the dividend payout ratio appears to be sustainable, the low yield and negative earnings growth rate compared to peers could raise concerns. Still, the company's established track record and solid profitability provide some comfort. As the industrial sector continues to evolve, potential investors should closely monitor Carpenter Technology's financial health and strategic direction.
GuruFocus Premium users can screen for high dividend yield stocks using the High Dividend Yield Screener.
This article created by GuruFocus is intended to provide general insight and is not intended as financial advice. Our commentary is based on historical data and analyst forecasts using an unbiased methodology and is not intended to serve as specific investment guidance. It does not constitute a recommendation to buy or sell stocks, and does not take into account your individual investment objectives or financial situation. Our objective is to provide fundamental data-driven analysis over time. Please note that our analysis may not incorporate the latest announcements or qualitative information from price-sensitive companies. GuruFocus has no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
