Exploring the Dividend Sustainability and Growth Prospects of Informa PLC (IFJPY, Financial)
Informa PLC (IFJPY) recently announced a dividend of $0.31 per share, payable on 2024-07-22, with the ex-dividend date set for 2024-06-07. 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 Informa PLC's dividend performance and assess its sustainability.
What Does Informa PLC Do?
Informa PLC is a British multinational publishing and events company that operates several different publishing brands across the United Kingdom, North America, China, and Europe. The company has five operating divisions: Informa Markets, Informa Connect, Informa Tech, Informa Intelligence, and Taylor & Francis. The company provides the data in the fields of pharma, finance, maritime, construction, aviation, fashion, marketing, cybersecurity, artificial intelligence, and others through its divisions. The Informa Markets division contributes to the majority of the revenue.
A Glimpse at Informa PLC's Dividend History
Informa PLC has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Informa PLC's Dividend Yield and Growth
As of today, Informa PLC currently has a 12-month trailing dividend yield of 1.48% and a 12-month forward dividend yield of 2.09%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Informa PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Informa PLC stock as of today is approximately 1.48%.
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, Informa PLC's dividend payout ratio is 0.28.
Informa PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Informa PLC's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Informa PLC'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 Informa PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Informa PLC's revenue has increased by approximately 24.80% per year on average, a rate that outperforms approximately 81.54% 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, Informa PLC's earnings increased by approximately 66.60% per year on average, a rate that outperforms approximately 88.59% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -5.20%, which outperforms approximately 32.4% of global competitors.
Next Steps
Considering Informa PLC's consistent dividend payments, growth in dividend yield, and robust financial health indicated by its payout ratio and profitability, the company appears well-positioned to continue rewarding its shareholders. Investors should keep an eye on the company's future earnings reports and any potential market shifts that could influence these dividends. For those interested in exploring further, 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.
