Unpacking JTC PLC's Dividend Performance and Sustainability
In This Article:
An in-depth analysis of JTC PLC's dividend history, yield, growth, and future prospects
JTC PLC (JTCPF) recently announced a dividend of $0.04 per share, payable on 2023-10-20, with the ex-dividend date set for 2023-09-21. 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 deep dive into JTC PLCs dividend performance and assess its sustainability.
What Does JTC PLC Do?
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JTC PLC is a Jersey-based company that engages in the provision of fund, corporate, and private client services. The company segments include Institutional Client Services (ICS) and Private Client Services (PCS). It generates maximum revenue from the ICS segment. The company provides company secretarial and administration services to a range of corporate clients comprising small and medium-sized enterprises, public companies, multinationals, sovereign wealth funds, family offices, and private clients. It also offers real estate, private equity, hedge, renewables, debt and other alternatives, sovereign wealth funds.
A Glimpse at JTC PLC's Dividend History
JTC PLC has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down JTC PLC's Dividend Yield and Growth
As of today, JTC PLC currently has a 12-month trailing dividend yield of 1.33% and a 12-month forward dividend yield of 1.42%. This suggests an expectation of increased dividend payments over the next 12 months. JTC PLC's dividend yield of 1.33% is near a 10-year high and outperforms than 8.85 of global competitors in the Asset Management industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, JTC PLC's annual dividend growth rate was 30.40%. Based on JTC PLC's dividend yield and five-year growth rate, the 5-year yield on cost of JTC PLC stock as of today is approximately 1.33%.
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, JTC PLC's dividend payout ratio is 0.58.