Yahoo Finance Danaos Corp's Dividend Analysis
Exploring the Sustainability and Growth of Danaos Corp's Dividends
Danaos Corp (NYSE:DAC) recently announced a dividend of $0.8 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-06-11. 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 Danaos Corp's dividend performance and assess its sustainability.
What Does Danaos Corp Do?
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Danaos Corp is an international owner of containerships, providing international seaborne transportation services by operating vessels in the containership sector of the shipping industry. The company's customers include major names like HMM, MSC, and Maersk. Geographically, Danaos Corp operates primarily in the Australia-Asia region, where it generates most of its revenue from its Container vessels segment.
A Glimpse at Danaos Corp's Dividend History
Danaos Corp has maintained a consistent dividend payment record since 2021, distributing dividends quarterly. This regularity in dividend payments highlights the company's financial health and commitment to returning value to its shareholders.
Breaking Down Danaos Corp's Dividend Yield and Growth
Danaos Corp currently boasts a 12-month trailing dividend yield of 3.26% and a forward dividend yield of 3.36%, indicating expectations of increased dividend payments over the next year. This yield is a key indicator of the dividend income relative to the stock price, suggesting an attractive return for dividend investors.
Danaos Corp's 5-year yield on cost stands at approximately 3.26%, reflecting the yield investors who purchased five years ago are receiving on their initial investment today, based on current dividends.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one must consider the company's payout ratio. Danaos Corp's dividend payout ratio is currently 0.11, indicating that a small portion of earnings is paid out as dividends, which supports sustainability and growth. Additionally, Danaos Corp's profitability rank of 8 out of 10 suggests robust earnings capabilities, with net profit reported in 7 out of the past 10 years.
Growth Metrics: The Future Outlook
Danaos Corp's growth rank of 8 out of 10, alongside a strong revenue per share and a 3-year revenue growth rate of 36.10% per year, positions it well against global competitors. The company's 3-year EPS growth rate of 62.30% and a 5-year EBITDA growth rate of 40.80% further underscore its potential for sustained dividend payments and financial health.
Conclusion: A Promising Horizon for Dividend Investors
Considering Danaos Corp's consistent dividend payments, robust payout ratio, and strong growth metrics, the company presents a promising opportunity for dividend investors. The forward-looking indicators suggest not only sustainability but also potential growth in dividend distributions, making Danaos Corp a noteworthy candidate for those seeking steady income streams. For further exploration of high-dividend yield stocks, 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.
This article first appeared on GuruFocus.
