Yahoo Finance Dell Technologies Inc's Dividend Analysis
Assessing the Upcoming Dividend Payment and Company Fundamentals
Dell Technologies Inc (NYSE:DELL) recently announced a dividend of $0.45 per share, payable on 2024-05-03, with the ex-dividend date set for 2024-04-22. 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 Dell Technologies Inc's dividend performance and assess its sustainability.
What Does Dell Technologies Inc Do?
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Dell Technologies is a broad information technology vendor, primarily supplying hardware to enterprises. It is focused on premium personal computers and enterprise on-premises data center hardware. It holds top-three shares in its core markets of personal computers, peripheral displays, mainstream servers, and external storage. Dell Technologies is vertically integrated but has a robust ecosystem of component and assembly partners, and also relies heavily on channel partners to fulfill its sales.
A Glimpse at Dell Technologies Inc's Dividend History
Dell Technologies Inc has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Dell Technologies Inc's Dividend Yield and Growth
As of today, Dell Technologies Inc currently has a 12-month trailing dividend yield of 1.29% and a 12-month forward dividend yield of 1.55%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Dell Technologies Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Dell Technologies Inc stock as of today is approximately 1.29%.
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 2024-01-31, Dell Technologies Inc's dividend payout ratio is 0.22. Dell Technologies Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dell Technologies Inc's profitability 5 out of 10 as of 2024-01-31, suggesting fair profitability. The company has reported net profit in 5 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. Dell Technologies Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Dell Technologies Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dell Technologies Inc's revenue has increased by approximately 2.10% per year on average, a rate that underperforms approximately 55.18% 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, Dell Technologies Inc's earnings increased by approximately 47.40% per year on average, a rate that underperforms approximately 14.58% of global competitors.
Concluding Insights on Dell Technologies Inc's Dividend Prospects
In conclusion, Dell Technologies Inc's dividend payments, alongside its growth rate, payout ratio, profitability, and growth metrics, present a mixed picture. The company's consistent dividend history and the anticipation of increased dividends provide a positive outlook for income-focused investors. However, investors should also consider the company's fair profitability and growth ranks, as well as how it compares with global competitors in terms of revenue and earnings growth. Dell Technologies Inc's ability to maintain and potentially grow its dividends will likely depend on its continued financial performance and strategic business decisions. With these factors in mind, investors should weigh the potential rewards against the inherent risks. 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.
