An In-depth Look at Crown Holdings Inc's Dividend Sustainability and Growth Prospects
Introduction to Crown Holdings Inc's Recent Dividend Announcement
Crown Holdings Inc (CCK, Financial) recently announced a dividend of $0.25 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-06-13. 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 Crown Holdings Inc's dividend performance and assess its sustainability.
What Does Crown Holdings Inc Do?
Crown Holdings is one of the world's largest producers of metal packaging. The company manufactures beverage cans, metal food cans, and closures as well as aerosol cans. With the purchase of Signode, the company also has a presence in a wide variety of protective transport packaging. Although it's headquartered in the United States, the vast majority of Crown's sales come from its operations in Europe, South America, and Southeast Asia.
A Glimpse at Crown Holdings Inc's Dividend History
Crown Holdings Inc has maintained a consistent dividend payment record since 2021, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Crown Holdings Inc's Dividend Yield and Growth
As of today, Crown Holdings Inc currently has a 12-month trailing dividend yield of 1.20% and a 12-month forward dividend yield of 1.23%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Crown Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Crown Holdings Inc stock as of today is approximately 1.20%.
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 2024-03-31, Crown Holdings Inc's dividend payout ratio is 0.17. Crown Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Crown Holdings Inc's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Crown Holdings Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Crown Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Crown Holdings Inc's revenue has increased by approximately 12.90% per year on average, a rate that outperforms approximately 76.09% 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, Crown Holdings Inc's earnings increased by approximately 21.10% per year on average, a rate that outperforms approximately 72.76% of global competitors.
Conclusion
Considering Crown Holdings Inc's consistent dividend payments, promising growth rate, and a robust payout ratio, the company appears well-positioned to maintain its dividend payouts. The strategic initiatives and strong market presence further bolster its prospects for sustained profitability and shareholder returns. For those interested in exploring more high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
