Yahoo Finance Sylvamo Corp's Dividend Analysis
Assessing the Sustainability of Sylvamo Corp's Upcoming Dividend
Sylvamo Corp (NYSE:SLVM) recently announced a dividend of $0.3 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-04-05. 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 Sylvamo Corps dividend performance and assess its sustainability.
What Does Sylvamo Corp Do?
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Sylvamo Corp is an uncoated papers company with a broad portfolio of top-tier brands and low-cost, large-scale paper mills, it produces uncoated freesheet (UFS) for paper products such as cut size and offset paper, as well as market pulp. The company offers Copy and Printer papers, Commercial Printing papers, Converting papers and Specialty papers. It operates in three geographical segments: Europe, Latin America, and North America.
A Glimpse at Sylvamo Corp's Dividend History
Sylvamo Corp has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sylvamo Corp's Dividend Yield and Growth
As of today, Sylvamo Corp currently has a 12-month trailing dividend yield of 1.79% and a 12-month forward dividend yield of 1.93%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Sylvamo Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Sylvamo Corp stock as of today is approximately 1.79%.
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 2023-12-31, Sylvamo Corp's dividend payout ratio is 0.19. Sylvamo Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sylvamo Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 6 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. Sylvamo Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Sylvamo Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sylvamo Corp's revenue has increased by approximately 17.10% per year on average, a rate that outperforms approximately 82.91% 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, Sylvamo Corp's earnings increased by approximately 48.60% per year on average, a rate that outperforms approximately 86.43% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -3.80%, which outperforms approximately 28.03% of global competitors.
Next Steps
In conclusion, Sylvamo Corp's upcoming dividend payment, backed by a history of consistent payouts, offers an attractive proposition for income-focused investors. The company's dividend growth rate, combined with a prudent payout ratio, underpins the sustainability of its dividends. With a profitability rank that indicates fair earnings capacity and growth metrics that showcase a solid revenue and earnings trajectory, Sylvamo Corp appears positioned to maintain its dividend payments. However, investors should always consider the broader economic and industry trends that could impact the company's financial health in the future. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium provides a valuable tool with 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.
