WD-40 Co's Dividend Analysis
Delving into WD-40 Co's Dividend Profile
WD-40 Co (NASDAQ:WDFC) recently announced a dividend of $0.88 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-18. 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 WD-40 Co's dividend performance and assess its sustainability.
What Does WD-40 Co Do?
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WD-40 Co manufactures and sells lubricants and cleaning products. The firm's product categories include maintenance and cleaning products. Maintenance products include the WD-40 signature brand aerosol spray lubricant as well as degreasers, rust removers, and bicycle maintenance products. Cleaning products include toilet cleaners, carpet stain removers and deodorizers, and heavy-duty hand soaps used to clean grease. The company organizes itself into three segments based on geography: Americas, Europe/Middle East/Africa, and Asia-Pacific. Around half of the company's revenue comes from the Americas segment, which includes the United States, Canada, and Latin America.
A Glimpse at WD-40 Co's Dividend History
WD-40 Co has maintained a consistent dividend payment record since 1985, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2006, earning the title of a dividend achiever, which is reserved for companies that have increased their dividend annually for at least the past 18 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down WD-40 Co's Dividend Yield and Growth
As of today, WD-40 Co currently has a 12-month trailing dividend yield of 1.23% and a 12-month forward dividend yield of 1.30%, indicating an anticipated increase in dividend payments over the next 12 months. Over the past three years, WD-40 Co's annual dividend growth rate was 7.70%. Extending to a five-year horizon, this rate increased to 9.00% per year. Over the past decade, WD-40 Co's annual dividends per share growth rate stands at an impressive 10.80%. Based on WD-40 Co's dividend yield and five-year growth rate, the 5-year yield on cost for WD-40 Co stock as of today is approximately 1.89%.
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 2023-11-30, WD-40 Co's dividend payout ratio is 0.65. WD-40 Co's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks WD-40 Co's profitability 9 out of 10 as of 2023-11-30, suggesting good profitability prospects. The company has reported positive net income for each of the past decade, further solidifying its high profitability.