A Comprehensive Analysis of AMBP's Dividend History, Yield, and Growth Rates
Ardagh Metal Packaging SA (AMBP, Financial) recently announced a dividend of $0.1 per share, payable on September 28, 2023, with the ex-dividend date set for September 13, 2023. As investors eagerly anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Leveraging data from GuruFocus, we delve into Ardagh Metal Packaging SA's dividend performance and evaluate its sustainability.
Understanding Ardagh Metal Packaging SA's Business Model
Ardagh Metal Packaging SA is a reputable supplier of infinitely recyclable, sustainable, metal beverage cans and ends to brand owners. The company operates in two primary segments: Europe and the Americas, with a majority of its revenue sourced from the Americas.
A Closer Look at Ardagh Metal Packaging SA's Dividend History
Since 2021, Ardagh Metal Packaging SA has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. Ardagh Metal Packaging SA has increased its dividend every year, earning it the prestigious title of a dividend king, a recognition given to companies that have consistently increased their dividend over the past 50 years.
Dissecting Ardagh Metal Packaging SA's Dividend Yield and Growth
As of today, Ardagh Metal Packaging SA boasts a 12-month trailing dividend yield and a 12-month forward dividend yield of 11.34%, indicating an expectation of consistent dividend payments over the next 12 months. Furthermore, the 5-year yield on cost of Ardagh Metal Packaging SA stock stands at approximately 11.34% as of today.
Is Ardagh Metal Packaging SA's Dividend Sustainable?
The dividend payout ratio of 5.00 as of June 30, 2023, suggests that Ardagh Metal Packaging SA retains a significant portion of its earnings, thus ensuring the availability of funds for future growth and unexpected downturns. However, with a profitability rank of 3 out of 10, the company's earnings prowess relative to its peers is low, raising concerns about the sustainability of its dividend.
Assessing Ardagh Metal Packaging SA's Growth Metrics
Ardagh Metal Packaging SA's growth rank of 3 out of 10 suggests poor growth prospects. However, with a revenue per share growth rate of approximately 12.10% per year on average, the company outperforms approximately 71.55% of global competitors, indicating a strong revenue model.
In Conclusion
While Ardagh Metal Packaging SA boasts a commendable dividend history and yield, concerns around its low payout ratio and profitability rank cast doubts on the sustainability of its dividends. The company's growth prospects also appear limited. Therefore, investors must tread carefully and consider these factors before making investment decisions. For high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener.
