Assessing the Sustainability of Littelfuse Inc's Upcoming Dividend
Littelfuse Inc (LFUS, Financial) recently announced a dividend of $0.65 per share, payable on 2024-03-07, with the ex-dividend date set for 2024-02-21. 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 Littelfuse Inc's dividend performance and assess its sustainability.
What Does Littelfuse Inc Do?
Littelfuse is a primary provider of circuit protection products (such as fuses and relays) into the transportation, industrial, telecommunications, and consumer electronics end markets. The firm is also increasing its power semiconductor business, where it predominantly serves industrial end markets and is breaking into electric vehicle charging infrastructure. Littelfuse has 17,000 global employees.
A Glimpse at Littelfuse Inc's Dividend History
Littelfuse Inc has maintained a consistent dividend payment record since 2010, distributing dividends on a quarterly basis. The company has increased its dividend each year since 2010, earning the title of a dividend achiever—a distinction awarded to companies that have increased their dividend annually for at least the past 14 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Littelfuse Inc's Dividend Yield and Growth
As of today, Littelfuse Inc currently has a trailing dividend yield of 1.01% and a forward dividend yield of 1.05%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, Littelfuse Inc's annual dividend growth rate was 9.20%, which decreased slightly to 8.70% per year over a five-year period. However, over the past decade, the annual dividends per share growth rate stands at an impressive 11.50%.
Considering Littelfuse Inc's dividend yield and five-year growth rate, the 5-year yield on cost for Littelfuse Inc stock as of today is approximately 1.53%.
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 2023-12-31, Littelfuse Inc's dividend payout ratio is 0.22.
Littelfuse Inc's profitability rank, at a perfect 10 out of 10, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Littelfuse Inc's robust growth rank of 10 out of 10 suggests that the company's growth trajectory is strong relative to its competitors. The company's revenue model is also strong, with a revenue per share and a 3-year revenue growth rate that outperforms approximately 81.52% of global competitors, increasing by an average of 17.00% per year.
The 3-year EPS growth rate showcases Littelfuse Inc's ability to grow its earnings, critical for sustaining dividends in the long run, with an average annual increase of 23.90%, outperforming approximately 64.17% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 19.30% outperforms approximately 66.56% of global competitors.
Next Steps
In conclusion, Littelfuse Inc's consistent dividend payments, robust dividend growth rate, sustainable payout ratio, strong profitability, and impressive growth metrics paint a promising picture for value investors. The company's commitment to shareholder returns, coupled with its financial health and market position, suggests that its dividends are well-positioned for the future. Investors seeking high-dividend yield stocks may find Littelfuse Inc to be an attractive option and can explore further using GuruFocus's 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.
