AptarGroup Inc's Dividend Analysis
Assessing the Sustainability and Growth of AptarGroup Inc's Dividends
AptarGroup Inc (NYSE:ATR) recently announced a dividend of $0.41 per share, payable on 0000-00-00, with the ex-dividend date set for 2024-01-31. 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 AptarGroup Inc's dividend performance and assess its sustainability.
What Does AptarGroup Inc Do?
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Headquartered in Crystal Lake, Illinois, AptarGroup is a leading global supplier of dispensing systems such as aerosol valves, pumps, and closures to the consumer goods and pharmaceutical markets. With the bulk of its annual net sales coming from Europe (50% of sales) and the United States (33%), Aptar aims to increase its presence in Asia (10%) and Latin America (7%). Aptar's pharmaceutical division generates roughly one third of group sales but over two thirds of group profits.
A Glimpse at AptarGroup Inc's Dividend History
AptarGroup Inc has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis. AptarGroup Inc has increased its dividend each year since 1993. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 25 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down AptarGroup Inc's Dividend Yield and Growth
As of today, AptarGroup Inc currently has a 12-month trailing dividend yield of 1.21% and a 12-month forward dividend yield of 1.25%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, AptarGroup Inc's annual dividend growth rate was 2.30%. Extended to a five-year horizon, this rate increased to 3.70% per year. And over the past decade, AptarGroup Inc's annual dividends per share growth rate stands at 5.30%.
Based on AptarGroup Inc's dividend yield and five-year growth rate, the 5-year yield on cost of AptarGroup Inc stock as of today is approximately 1.45%.
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 2023-09-30, AptarGroup Inc's dividend payout ratio is 0.35.