Understanding LDOS's Dividend History, Yield, Growth, and Future Prospects
Leidos Holdings Inc(LDOS, Financial) recently announced a dividend of $0.36 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. 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 deep dive into Leidos Holdings Incs dividend performance and assess its sustainability.
What Does Leidos Holdings Inc Do?
Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil and health markets, both domestically and internationally. The company's customer base includes the U.S. Department of Defense, the U.S. Intelligence Community, and many other U.S. civilian, state, and local government agencies. The company generates key revenue from its Defense Solutions segment.
A Glimpse at Leidos Holdings Inc's Dividend History
Leidos Holdings Inc has maintained a consistent dividend payment record since 2012, distributing dividends on a quarterly basis. The following chart illustrates the company's annual Dividends Per Share for tracking historical trends.
Breaking Down Leidos Holdings Inc's Dividend Yield and Growth
As of today, Leidos Holdings Inc currently has a 12-month trailing dividend yield of 1.50% and a 12-month forward dividend yield of 1.50%, suggesting an expectation of same dividend payments over the next 12 months.
Over the past three years, Leidos Holdings Inc's annual dividend growth rate was 2.90%. Extended to a five-year horizon, this rate decreased to 2.60% per year. Based on Leidos Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Leidos Holdings Inc stock as of today is approximately 1.71%.
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 2023-06-30, Leidos Holdings Inc's dividend payout ratio is 0.28.
Leidos Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Leidos Holdings Inc's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Leidos Holdings Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Leidos Holdings Inc's revenue has increased by approximately 10.90% per year on average, a rate that outperforms approximately 57.11% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Leidos Holdings Inc's earnings increased by approximately 2.50% per year on average, a rate that outperforms approximately 40.89% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 14.00%, outperforms approximately 55.36% of global competitors, further strengthening the company's growth prospects.
Conclusion
Leidos Holdings Inc's solid dividend history, consistent growth rate, and robust profitability make it an attractive option for investors seeking dividend-paying stocks. With a strong growth trajectory and a sustainable payout ratio, Leidos Holdings Inc appears well-positioned to maintain its dividend payments in the foreseeable future. However, as with any investment, potential investors should conduct thorough research and consider the company's overall financial health before making an investment decision.
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