Yahoo Finance Seek Ltd's Dividend Analysis
Delving into Seek Ltd's Upcoming Dividend Payment and Financial Health
Seek Ltd (SKLTY) recently announced a dividend of $0.25 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-03-19. 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 Seek Ltd's dividend performance and assess its sustainability.
What Does Seek Ltd Do?
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Seek is a technology company operating in the employment segment. Seek Ltd's primary business is an online listings platform for employment, www.seek.com.au, which is the largest online listings platform for employment in Australia and New Zealand. Seek Ltd also owns and operates employment listings platforms in Southeast Asia and Latin America and operates an investment business in employment listings platforms and other employment related businesses.
A Glimpse at Seek Ltd's Dividend History
Seek Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Seek Ltd's Dividend Yield and Growth
As of today, Seek Ltd currently has a 12-month trailing dividend yield of 1.81% and a 12-month forward dividend yield of 1.59%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Seek Ltd's annual dividend growth rate was 8.70%. Based on Seek Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Seek Ltd stock as of today is approximately 1.81%.
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, Seek Ltd's dividend payout ratio is 1.60, which may suggest that the company's dividend may not be sustainable.
Seek Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Seek Ltd's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 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. Seek Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Seek Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Seek Ltd's revenue has decreased by approximately -8.50% per year on average, a rate that underperforms approximately 78.45% 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, Seek Ltd's earnings increased by approximately 94.40% per year on average, a rate that underperforms approximately 4.81% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.60%, which underperforms approximately 60% of global competitors.
Next Steps
In conclusion, while Seek Ltd's dividend payment history and growth rate are notable, the sustainability of its dividends raises questions due to the current payout ratio and mixed performance in growth metrics. Investors should weigh these factors carefully against Seek Ltd's profitability and the company's position in the competitive employment listings market. As the landscape of employment technology evolves, will Seek Ltd continue to maintain its dividend attractiveness, or will investors need to seek opportunities elsewhere? For those seeking to diversify their portfolio with dividend-paying 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.
