Insights into the Dividend Performance and Sustainability of International Game Technology PLC
Upcoming Dividend Announcement by International Game Technology PLC
International Game Technology PLC (IGT, Financial) recently announced a dividend of $0.2 per share, slated for distribution on June 13, 2024, with the ex-dividend date set for May 30, 2024. As investors anticipate this forthcoming payment, it is crucial to delve into the company's dividend history, yield, and growth rates. This analysis utilizes comprehensive data from GuruFocus to evaluate the dividend performance and assess its sustainability.
Understanding International Game Technology PLC
International Game Technology PLC is a prominent gaming company known for delivering entertaining and responsible gaming experiences across various channels. The company operates through three main segments: Global Lottery, Global Gaming, and PlayDigital, with the Global Lottery segment being the largest revenue contributor. This segment primarily provides lottery products and services to governmental organizations. Geographically, International Game for Technology PLC garners a significant portion of its revenue from the United States.
A Look at International Game Technology PLC's Dividend History
Since 2014, International Game Technology PLC has maintained a consistent record of dividend payments, distributed quarterly. This consistency highlights the company's commitment to returning value to its shareholders.
Examining International Game Technology PLC's Dividend Yield and Growth
Currently, International Game Technology PLC boasts a trailing twelve-month dividend yield of 4.18% and an identical forward dividend yield, indicating stable dividend expectations over the next year. Over the past three years, the company has achieved an impressive annual dividend growth rate of 58.70%. Additionally, the 5-year yield on cost for International Game Technology PLC stock stands at approximately 4.18%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of dividends is often gauged by the dividend payout ratio, which for International Game Technology PLC is currently 0.56. This ratio indicates a balanced approach between distributing earnings as dividends and retaining funds for future growth and operational stability. The company's profitability rank is 6 out of 10, reflecting fair profitability with net profits reported in 5 out of the past 10 years.
Future Growth Prospects and Revenue Trends
For dividends to be sustainable, robust growth metrics are essential. International Game Technology PLC's growth rank is 6 out of 10, suggesting a fair growth outlook. The company's revenue per share and the 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 11.70%, although it slightly underperforms compared to 53.05% of global competitors.
Conclusion: Evaluating International Game Technology PLC's Dividend Viability
Considering International Game Technology PLC's consistent dividend payments, robust growth rate, and prudent payout ratio, the company's dividends appear sustainable. However, investors should continue to monitor profitability and revenue growth, which are crucial for long-term dividend sustainability. For those interested in high-dividend yield stocks, the High Dividend Yield Screener on GuruFocus may serve as a valuable resource.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
