An In-Depth Look at World Kinect Corp's Upcoming Dividend and Historical Performance
World Kinect Corp (WKC, Financial) recently announced a dividend of $0.17 per share, payable on 2024-04-16, with the ex-dividend date set for 2024-03-22. 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 World Kinect Corps dividend performance and assess its sustainability.
What Does World Kinect Corp Do?
World Kinect Corp is an energy management company involved in providing supply fulfillment, energy procurement advisory services, and transaction and payment management solutions to commercial and industrial customers. It sells and delivers liquid fuels, natural gas, electricity, renewable energy, and other sustainability solutions. The company operates in three reportable segments consisting of aviation, land, and marine, with the majority of revenue generated from the Aviation segment.
A Glimpse at World Kinect Corp's Dividend History
World Kinect Corp has maintained a consistent dividend payment record since 1994, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 1995, earning it the title of a dividend aristocrat—a prestigious recognition for companies with at least 29 consecutive years of dividend increases.
Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down World Kinect Corp's Dividend Yield and Growth
As of today, World Kinect Corp currently has a 12-month trailing dividend yield of 2.13% and a 12-month forward dividend yield of 2.60%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 11.90%, which increased to 17.10% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at an impressive 14.70%.
Based on World Kinect Corp's dividend yield and five-year growth rate, the 5-year yield on cost for World Kinect Corp stock as of today is approximately 4.69%.
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, World Kinect Corp's dividend payout ratio is 0.29.
World Kinect Corp's profitability rank, as of 2023-12-31, is 7 out of 10, suggesting good profitability prospects. The company has reported a net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
World Kinect Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Its revenue per share and 3-year revenue growth rate indicate a strong revenue model, with revenue increasing by approximately 34.50% per year on average, outperforming approximately 83.04% of global competitors.
The company's 3-year EPS growth rate and 5-year EBITDA growth rate also provide insight into its capability to sustain dividends in the long run, despite some fluctuations.
Engaging Conclusion
In conclusion, World Kinect Corp's consistent dividend payments, robust dividend growth rate, moderate payout ratio, and solid profitability and growth metrics paint a picture of a company committed to rewarding its shareholders. The company's status as a dividend aristocrat combined with its forward-looking growth indicators, suggest that World Kinect Corp remains a potentially attractive option for value investors focused on dividend income. However, as with any investment, it's essential to consider the broader economic context and individual investment goals. Will World Kinect Corp continue its legacy of dividend growth, and how will it adapt to future market challenges? Value investors may want to keep a close watch on World Kinect Corp's performance in the coming quarters.
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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.
