Exploring the Upcoming Dividend and Financial Health of Ardagh Metal Packaging SA
Ardagh Metal Packaging SA (AMBP, Financial) recently announced a dividend of $0.1 per share, payable on 2024-06-26, with the ex-dividend date set for 2024-06-12. 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 Ardagh Metal Packaging SA's dividend performance and assess its sustainability.
What Does Ardagh Metal Packaging SA Do?
Ardagh Metal Packaging SA is a supplier of infinitely recyclable, sustainable, metal beverage cans and ends to brand owners. Its segment includes Europe and the Americas. It derives a majority of its revenue from the Americas.
A Glimpse at Ardagh Metal Packaging SA's Dividend History
Ardagh Metal Packaging SA has maintained a consistent dividend payment record since 2021, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ardagh Metal Packaging SA's Dividend Yield and Growth
Ardagh Metal Packaging SA currently boasts a 12-month trailing dividend yield of 10.28% and a 12-month forward dividend yield of 10.28%, suggesting an expectation of consistent dividend payments over the next 12 months. Additionally, based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Ardagh Metal Packaging SA stock as of today is approximately 10.28%.
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. As of 2024-03-31, Ardagh Metal Packaging SA's dividend payout ratio is 0.00, suggesting that the company retains a significant part of its earnings. However, Ardagh Metal Packaging SA's profitability rank of 3 out of 10, along with its net profit reported in only 2 of the past 10 years, raises concerns about the sustainability of future dividends.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Ardagh Metal Packaging SA's growth rank of 3 out of 10 suggests poor growth prospects. However, Ardagh Metal Packaging SA's revenue per share, combined with a 3-year revenue growth rate of 12.10% per year on average, indicates a strong revenue model, outperforming approximately 73.64% of global competitors.
Conclusion: Evaluating Ardagh Metal Packaging SA's Dividend Sustainability
While Ardagh Metal Packaging SA shows promising revenue growth and a high dividend yield, the low profitability and growth ranks, alongside a minimal payout ratio, suggest caution. Investors should monitor these metrics closely to evaluate the long-term sustainability of dividends. For those interested in high-dividend yield opportunities, GuruFocus Premium users can explore further 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.
