Yahoo Finance CNH Industrial NV's Dividend Analysis
Exploring the Dividend Performance and Sustainability of CNH Industrial NV
CNH Industrial NV (NYSE:CNHI) recently announced a dividend of $0.47 per share, payable on 2024-05-29, with the ex-dividend date set for 2024-05-10. 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 CNH Industrial NV's dividend performance and assess its sustainability.
What Does CNH Industrial NV Do?
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CNH Industrial is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations worldwide. CNH's finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.
A Glimpse at CNH Industrial NV's Dividend History
CNH Industrial NV has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down CNH Industrial NV's Dividend Yield and Growth
As of today, CNH Industrial NV currently has a 12-month trailing dividend yield of 3.40% and a 12-month forward dividend yield of 4.03%. This suggests an expectation of increased dividend payments over the next 12 months. Based on CNH Industrial NV's dividend yield and five-year growth rate, the 5-year yield on cost of CNH Industrial NV stock as of today is approximately 3.40%.
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, CNH Industrial NV's dividend payout ratio is 0.24.
CNH Industrial NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CNH Industrial NV's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. 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. CNH Industrial NV'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 CNH Industrial NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CNH Industrial NV's revenue has increased by approximately 18.70% per year on average, a rate that outperforms approximately 74.02% 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, CNH Industrial NV's earnings increased by approximately 59.40% per year on average, a rate that outperforms approximately 83.85% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 20.70%, which outperforms approximately 72.88% of global competitors.
Next Steps
Considering CNH Industrial NV's strong dividend payments, growth in dividend rates, sustainable payout ratios, robust profitability, and promising growth metrics, the company presents a compelling case for investors seeking stable dividend income with growth potential. For those looking to expand their investment in high-yield stocks, 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.
This article first appeared on GuruFocus.
