A Comprehensive Analysis of Neo Performance Materials Inc's Dividend History, Yield, Growth, and Future Prospects
Neo Performance Materials Inc (NOPMF, Financial) has recently announced a dividend of $0.1 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-19. As investors anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This article, using data from GuruFocus, delves into Neo Performance Materials Inc's dividend performance and scrutinizes its sustainability.
Understanding Neo Performance Materials Inc
Neo Performance Materials Inc is a pioneer in the innovation, development, processing, and manufacturing of rare earth and rare metal-based functional materials. It operates across four segments: Magnequench, Chemicals & Oxides, Rare Metals, and Corporate. The Magnequench segment produces magnetic powders used in bonded and hot-deformed, fully dense neodymium-iron-boron magnets. The Chemicals & Oxides segment manufactures a wide range of industrial materials, while the Rare Metals segment specializes in producing specialty metals and their compounds. Its geographical segments span Asia, North America, Europe, and Others.
Neo Performance Materials Inc's Dividend History in Brief
Since 2018, Neo Performance Materials Inc has maintained a consistent dividend payment record, with dividends currently distributed on a quarterly basis. The chart below illustrates the annual Dividends Per Share for historical trend tracking.
Dissecting Neo Performance Materials Inc's Dividend Yield and Growth
As of today, Neo Performance Materials Inc boasts a 12-month trailing dividend yield of 4.66% and a 12-month forward dividend yield of 4.70%. This suggests an anticipated increase in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 1.70%. Taking into account the company's dividend yield and five-year growth rate, the 5-year yield on cost of Neo Performance Materials Inc stock as of today is approximately 4.57%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
Understanding the sustainability of the dividend requires an evaluation of 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, Neo Performance Materials Inc's dividend payout ratio is 0.00.
Neo Performance Materials Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Neo Performance Materials Inc's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 5 years out of the past 10 years.
Future Prospects: Growth Metrics
For the sustainability of dividends, a company must have robust growth metrics. Neo Performance Materials Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Neo Performance Materials Inc's revenue has increased by approximately 14.30% per year on average, a rate that outperforms approximately 64.87% 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, Neo Performance Materials Inc's earnings increased by approximately 2.20% per year on average, a rate that outperforms approximately 33.85% of global competitors.
Concluding Thoughts
Neo Performance Materials Inc's consistent dividend payments, modest growth rate, low payout ratio, fair profitability, and promising growth metrics paint a positive picture for its dividend sustainability. However, as with any investment, it's crucial for investors to conduct their due diligence and consider the company's overall financial health and market conditions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
