Exploring the Dividend History, Yield, and Growth Rates of 2020 Bulkers Ltd
2020 Bulkers Ltd (TTBKF, Financial) recently announced a dividend of $0.03 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-20. 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 2020 Bulkers Ltd's dividend performance and assess its sustainability.
Introduction to 2020 Bulkers Ltd
2020 Bulkers Ltd is an owner and operator of large dry bulk vessels. The Company has eight Newcastlemax dry bulk vessels in operation.
2020 Bulkers Ltd's Dividend History
2020 Bulkers Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
2020 Bulkers Ltd's Dividend Yield and Growth
As of today, 2020 Bulkers Ltd currently has a 12-month trailing dividend yield of 6.29% and a 12-month forward dividend yield of 6.00%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, 2020 Bulkers Ltd's annual dividend growth rate was 116.80%. Based on 2020 Bulkers Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of 2020 Bulkers Ltd stock as of today is approximately 6.29%.
Payout Ratio and Profitability: Assessing Dividend Sustainability
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, 2020 Bulkers Ltd's dividend payout ratio is 1.07, which may suggest that the company's dividend may not be sustainable.
2020 Bulkers Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks 2020 Bulkers Ltd's profitability 4 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of the past 10 years.
Growth Metrics and Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. 2020 Bulkers Ltd's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and 2020 Bulkers Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. 2020 Bulkers Ltd's revenue has increased by approximately 97.40% per year on average, a rate that outperforms approximately 98.69% of global competitors.
Conclusion
While 2020 Bulkers Ltd's dividend history and growth rate are commendable, its payout ratio and profitability rank raise concerns about the sustainability of its dividends. Additionally, the company's growth metrics suggest limited growth prospects. Therefore, investors should exercise caution and consider these factors when making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
