Insights into EQB Inc's Upcoming Dividend Payment and Financial Health
EQB Inc (EQGPF, Financial) recently announced a dividend of $0.4 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-12-19. 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 look into EQB Inc's dividend performance and assess its sustainability.
What Does EQB Inc Do?
EQB Inc operates through its wholly owned subsidiary, Equitable Bank, Canada's Challenger Bankâ„¢. It serves Canadians through two business lines, Personal Banking and Business Banking. The company differentiates by providing a host of challenger bank deposit services, alternative single-family lending, reverse mortgage lending, insurance lending, Specialized finance, Commercial finance group, Equipment financing, credit union services and trust services.
A Glimpse at EQB Inc's Dividend History
EQB Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. EQB Inc has increased its dividend each year since 2004. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 19 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down EQB Inc's Dividend Yield and Growth
As of today, EQB Inc currently has a 12-month trailing dividend yield of 1.63% and a 12-month forward dividend yield of 1.81%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, EQB Inc's annual dividend growth rate was 23.30%. Extended to a five-year horizon, this rate decreased to 17.90% per year. And over the past decade, EQB Inc's annual dividends per share growth rate stands at an impressive 14.60%.
Based on EQB Inc's dividend yield and five-year growth rate, the 5-year yield on cost of EQB Inc stock as of today is approximately 3.71%.
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 2023-10-31, EQB Inc's dividend payout ratio is 0.15.
EQB Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks EQB Inc's profitability 6 out of 10 as of 2023-10-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. EQB Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and EQB Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. EQB Inc's revenue has increased by approximately 14.80% per year on average, a rate that outperforms approximately 82.17% 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, EQB Inc's earnings increased by approximately 14.30% per year on average, a rate that outperforms approximately 66.44% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.00%, which outperforms approximately 71.86% of global competitors.
Next Steps
In conclusion, EQB Inc's consistent dividend payments, robust dividend growth rate, low payout ratio, fair profitability, and positive growth metrics paint a promising picture for value investors focused on income-generating stocks. As EQB Inc continues to navigate the financial sector with its challenger banking model, investors should consider the company's historical performance and future prospects when making investment decisions. Will EQB Inc maintain its status as a dividend achiever in the years to come? This is a question for investors to ponder as they assess the company's dividend sustainability amidst evolving market conditions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
