Yahoo Finance Korn Ferry's Dividend Analysis
Assessing Korn Ferry's Upcoming Dividend Payment and Financial Health
Korn Ferry (NYSE:KFY) recently announced a dividend of $0.33 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-03-26. 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 Korn Ferry's dividend performance and assess its sustainability.
What Does Korn Ferry Do?
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Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The company's segments include Consulting; Digital; Executive Search and RPO and Professional Search.
A Glimpse at Korn Ferry's Dividend History
Korn Ferry has maintained a consistent dividend payment record since 2015, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Korn Ferry's Dividend Yield and Growth
As of today, Korn Ferry currently has a 12-month trailing dividend yield of 1.30% and a 12-month forward dividend yield of 1.57%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Korn Ferry's annual dividend growth rate was 14.50%. Extended to a five-year horizon, this rate decreased to 7.60% per year. Based on Korn Ferry's dividend yield and five-year growth rate, the 5-year yield on cost of Korn Ferry stock as of today is approximately 1.88%.
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, Korn Ferry's dividend payout ratio is 0.20. Korn Ferry's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Korn Ferry's profitability 9 out of 10 as of 2024-01-31, suggesting good profitability prospects. 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. Korn Ferry's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Korn Ferry's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Korn Ferry's revenue has increased by approximately 15.20% per year on average, outperforming approximately 75.84% 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, Korn Ferry's earnings increased by approximately 19.50% per year on average, outperforming approximately 61.8% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 21.50%, outperforms approximately 76.87% of global competitors.
Next Steps
In conclusion, Korn Ferry's upcoming dividend payment, consistent dividend growth rate, prudent payout ratio, strong profitability, and robust growth metrics paint a picture of a company with a healthy dividend profile. The data suggests that Korn Ferry is not only rewarding shareholders with regular income but is also managing its resources effectively to sustain these payments while investing in future growth. For investors seeking income and stability, Korn Ferry appears to be a noteworthy candidate for portfolio consideration. Will Korn Ferry continue to navigate the balance between rewarding shareholders and investing in growth opportunities? 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.
