Yahoo Finance The North West Co Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
The North West Co Inc (NNWWF) recently announced a dividend of $0.39 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-04-17. 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 The North West Co Inc's dividend performance and assess its sustainability.
What Does The North West Co Inc Do?
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The North West Co Inc is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company provides food, family apparel, housewares, appliances, and outdoor products, with food products accounting for the majority of the company's revenue. The company also offers services, including post offices, income tax return preparation, money transfers, commercial business sales, and others. Its geographical segment includes Canada and International. It generates maximum revenue from Canada.
A Glimpse at The North West Co Inc's Dividend History
The North West Co Inc has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis.
The North West Co Inc has increased its dividend each year since 2013. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 11 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down The North West Co Inc's Dividend Yield and Growth
As of today, The North West Co Inc currently has a 12-month trailing dividend yield of 4.06% and a 12-month forward dividend yield of 4.08%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, The North West Co Inc's annual dividend growth rate was 3.70%. Extended to a five-year horizon, this rate increased to 4.00% per year. And over the past decade, The North West Co Inc's annual dividends per share growth rate stands at 3.20%.
Based on The North West Co Inc's dividend yield and five-year growth rate, the 5-year yield on cost of The North West Co Inc stock as of today is approximately 4.94%.
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, The North West Co Inc's dividend payout ratio is 0.58.
The North West Co Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks The North West Co Inc's profitability 9 out of 10 as of 2024-01-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. The North West Co Inc'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 The North West Co Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The North West Co Inc's revenue has increased by approximately 2.30% per year on average, a rate that underperforms approximately 64.75% 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, The North West Co Inc's earnings increased by approximately -1.80% per year on average, a rate that underperforms approximately 72.73% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.10%, which underperforms approximately 52.91% of global competitors.
Next Steps
In conclusion, The North West Co Inc's upcoming dividend, alongside its history of consistent dividend growth and a reasonable payout ratio, paints a picture of a reliable income stock. The company's high profitability rank underpins its capacity to sustain dividends. However, the revenue and earnings growth rates suggest that there may be challenges ahead. As such, value investors should weigh the company's stable dividend history against the growth metrics that hint at future performance. Will The North West Co Inc continue to navigate the retail landscape successfully, maintaining its dividend achiever status? Investors will need to monitor the company's growth strategies and market conditions closely. For those seeking to expand their portfolios with dividend-paying stocks, GuruFocus Premium users can explore opportunities 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.
