Yahoo Finance Intermediate Capital Group PLC's Dividend Analysis
An In-Depth Look at Upcoming Dividends, Historical Performance, and Future Sustainability
Intermediate Capital Group PLC (ICGUF) recently announced a dividend of $0.53 per share, payable on 2024-08-02, with the ex-dividend date set for 2024-06-13. 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 Intermediate Capital Group PLC's dividend performance and assess its sustainability.
What Does Intermediate Capital Group PLC Do?
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Intermediate Capital Group PLC is an asset management firm that divides its business model into two primary sections, including a fund management company and an investment company. The fund management company is the operating business of the group that sources and manages investments in the European, Asia-Pacific, and North American markets. It allocates capital to corporate investments, capital market investments, real assets, and private equity secondary market transactions. The investment company co-invests alongside third parties in new or existing funds. Its strategy emphasizes a growth-oriented, activist, and long-term approach to investing. It generates revenue through interest income and secondarily through management fees.
A Glimpse at Intermediate Capital Group PLC's Dividend History
Intermediate Capital Group PLC has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Intermediate Capital Group PLC's Dividend Yield and Growth
As of today, Intermediate Capital Group PLC currently has a 12-month trailing dividend yield of 3.25% and a 12-month forward dividend yield of 3.30%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Intermediate Capital Group PLC's annual dividend growth rate was 13.90%. Extended to a five-year horizon, this rate increased to 19.40% per year. And over the past decade, Intermediate Capital Group PLC's annual dividends per share growth rate stands at an impressive 13.50%.
Based on Intermediate Capital Group PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Intermediate Capital Group PLC stock as of today is approximately 7.89%.
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, Intermediate Capital Group PLC's dividend payout ratio is 1.07, which may suggest that the company's dividend may not be sustainable. Intermediate Capital Group PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Intermediate Capital Group PLC's profitability 6 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Intermediate Capital Group PLC'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 Intermediate Capital Group PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Intermediate Capital Group PLC's revenue has increased by approximately 3.70% per year on average, a rate that underperforms approximately 55.85% 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, Intermediate Capital Group PLC's earnings increased by approximately 0.50% per year on average, a rate that underperforms approximately 57.79% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.00%, which underperforms approximately 24.52% of global competitors.
Next Steps
In conclusion, while Intermediate Capital Group PLC has demonstrated a robust history of dividend payments and growth, its future sustainability could be challenged by its payout ratio and mixed growth metrics. Investors should keep an eye on these factors when considering this stock for their portfolios. For those looking to expand their investment in high-dividend 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.
