An in-depth analysis of Marubeni Corp's dividend performance and sustainability
Marubeni Corp (MARUF, Financial) recently announced a dividend of $39 per share, payable on an unconfirmed date, with the ex-dividend date set for 2023-09-28. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Marubeni Corp's dividend performance and assess its sustainability.
Understanding Marubeni Corp's Operations
Marubeni Corp operates as a general trading company. It primarily focuses on trading and business investments in grain, natural resource, and energy fields, as well as power generation. By investing in farms, power plants, mines, transportation systems, and other distributors, Marubeni Corp can sell resources to the global market. The company has penetrated these markets through acquisitions or internal project development. Japan and the United States are the two regions generating the most sales, with approximately half of sales deriving from Japan and a third from the United States.
A Glimpse at Marubeni Corp's Dividend History
Marubeni Corp has maintained a consistent dividend payment record since 2011, with dividends currently distributed on a bi-annual basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Breaking Down Marubeni Corp's Dividend Yield and Growth
As of now, Marubeni Corp has a 12-month trailing dividend yield of 3.08% and a 12-month forward dividend yield of 3.54%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, Marubeni Corp's annual dividend growth rate was 30.60%, decreasing to 18.50% per year over a five-year horizon. Over the past decade, Marubeni Corp's annual dividends per share growth rate stands at 10.00%. Based on Marubeni Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Marubeni Corp stock as of today is approximately 7.20%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
Assessing the sustainability of the dividend requires evaluating 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, Marubeni Corp's dividend payout ratio is 0.25. Marubeni Corp's profitability rank is 7 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.
Looking at Growth Metrics: The Future Outlook
For a company to sustain dividends, robust growth metrics are crucial. Marubeni Corp's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. Marubeni Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Marubeni Corp's revenue has increased by approximately 10.90% per year on average, a rate that outperforms approximately 66.74% of global competitors.
Concluding Remarks
Given Marubeni Corp's consistent dividend payments, steady growth rate, modest payout ratio, sound profitability, and robust growth metrics, the company's dividends seem sustainable in the foreseeable future. However, investors should continue monitoring these factors for any significant changes. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
