Magellan Financial Group Ltd's Dividend Analysis
In This Article:
Delving into the Dividend Details of Magellan Financial Group Ltd (MGLLF)
Magellan Financial Group Ltd (MGLLF) recently announced a dividend of $0.29 per share, payable on 2024-03-06, with the ex-dividend date set for 2024-02-20. 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 Magellan Financial Group Ltd's dividend performance and assess its sustainability.
What Does Magellan Financial Group Ltd Do?
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Magellan Financial Group is an Australia-based niche funds manager. Established in 2006, the firm specializes in the management of equity and infrastructure funds for domestic retail and institutional investors. Magellan has historically been particularly successful in winning mandates from global institutional investors. Current FUM is split across global equities, infrastructure and Australian equities.
A Glimpse at Magellan Financial Group Ltd's Dividend History
Magellan Financial Group Ltd has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Magellan Financial Group Ltd's Dividend Yield and Growth
As of today, Magellan Financial Group Ltd currently has a 12-month trailing dividend yield of 8.77% and a 12-month forward dividend yield of 5.91%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Magellan Financial Group Ltd's annual dividend growth rate was -17.20%. Extended to a five-year horizon, this rate increased to 6.40% per year. And over the past decade, Magellan Financial Group Ltd's annual dividends per share growth rate stands at an impressive 28.30%.
Based on Magellan Financial Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Magellan Financial Group Ltd stock as of today is approximately 11.96%.
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 2023-06-30, Magellan Financial Group Ltd's dividend payout ratio is 1.16, which may suggest that the company's dividend may not be sustainable.