Yahoo Finance Entain PLC's Dividend Analysis
Understanding Entain PLC's Upcoming Dividend Payout
Entain PLC (GMVHY) recently announced a dividend of $0.11 per share, payable on 2024-05-10, with the ex-dividend date set for 2024-03-15. 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 Entain PLC's dividend performance and assess its sustainability.
What Does Entain PLC Do?
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Entain PLC is an international sports betting and gaming company operating both online and in the retail sector. It has five reportable segments; Online comprises betting and gaming activities from online and mobile operations, Retail comprises betting and retail activities in the shop estates in Great Britain, Northern Ireland, Jersey, Republic of Ireland, Belgium, Italy, and Croatia, New opportunities unikrn and innovation spend, Corporate includes costs associated with Group functions including Group executive, legal, Group finance, United States joint venture, tax and treasury, and Other segments includes activities related to telephone betting, Stadia and on course pitches.
A Glimpse at Entain PLC's Dividend History
Entain PLC has maintained a consistent dividend payment record since 2022, with distributions occurring on a bi-annual basis. Unfortunately, there is no available data to confirm the length of the dividend increase streak, so it cannot be classified as a dividend king at this time. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Entain PLC's Dividend Yield and Growth
As of today, Entain PLC currently has a 12-month trailing dividend yield of 2.18% and a 12-month forward dividend yield of 2.26%, indicating expectations of increased dividend payments over the next 12 months. Over the past three years, Entain PLC's annual dividend growth rate was -36.80%. The 5-year yield on cost as of today is approximately 2.18%.
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 2023-06-30, Entain PLC's dividend payout ratio is 0.32, which suggests a sustainable dividend payment given the company retains a significant part of its earnings for future growth and unexpected downturns. Entain PLC's profitability rank of 7 out of 10 suggests good profitability prospects, with net profit reported in 6 out of the past 10 years.
Growth Metrics: The Future Outlook
Entain PLC's growth rank of 7 out of 10 indicates a positive growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate have outperformed approximately 58.26% of global competitors, with an average increase of about 6.10% per year. Additionally, Entain PLC's 3-year EPS growth rate and 5-year EBITDA growth rate further demonstrate its capability to grow earnings and sustain dividends in the long run.
Concluding Thoughts on Entain PLC's Dividend Prospects
When considering Entain PLC's dividend payments, growth rate, payout ratio, profitability, and growth metrics, the company presents an interesting case for investors seeking dividends. Despite a negative three-year dividend growth rate, its solid profitability and growth metrics may offer reassurance about the sustainability of future dividends. Investors should continue to monitor these factors, as they may influence dividend stability and growth potential. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener for more in-depth analysis and screening.
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.
