Examining the Dividend Profile of Owens-Corning Inc

Owens-Corning Inc (NYSE:OC) recently announced a dividend of $0.6 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-01. 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 Owens-Corning Inc's dividend performance and assess its sustainability.

What Does Owens-Corning Inc Do?

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Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with three reportable segments: Composites, Insulation, and Roofing. It generates maximum revenue from the Roofing segment. Its Roofing segment laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials, and oxidized asphalt. It meets the growing demand for longer-lasting, aesthetically attractive laminate products with modest capital investment.

A Glimpse at Owens-Corning Inc's Dividend History

Owens-Corning Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Owens-Corning Inc has increased its dividend each year since 2014, earning it the status of a dividend achiever, a distinction awarded to companies with at least a decade of consecutive dividend increases.

Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Owens-Corning Inc's Dividend Yield and Growth

As of today, Owens-Corning Inc currently has a 12-month trailing dividend yield of 1.45% and a 12-month forward dividend yield of 1.62%. This indicates an expectation of increased dividend payments over the next 12 months. Over the past three years, Owens-Corning Inc's annual dividend growth rate was 30.10%. When extended to a five-year horizon, this rate decreased to 20.30% per year. Based on Owens-Corning Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Owens-Corning Inc stock as of today is approximately 3.65%.

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, Owens-Corning Inc's dividend payout ratio is 0.16.