Corning Inc's Dividend Analysis
In this article:
An In-depth Look at Corning Inc's Dividend Sustainability and Growth Prospects
Corning Inc (NYSE:GLW) recently announced a dividend of $0.28 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-05-31. 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 Corning Inc's dividend performance and assess its sustainability.
What Does Corning Inc Do?
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Corning is a leader in materials science, specializing in the production of glass, ceramics, and optical fiber. The firm supplies its products for a wide range of applications, from flat-panel displays in televisions to gasoline particulate filters in automobiles to optical fiber for broadband access, with a leading share in many of its end markets.
A Glimpse at Corning Inc's Dividend History
Corning Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis.
Corning Inc has increased its dividend each year since 2007. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 17 years.
Breaking Down Corning Inc's Dividend Yield and Growth
As of today, Corning Inc currently has a 12-month trailing dividend yield of 3.02% and a 12-month forward dividend yield of 3.02%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Corning Inc's annual dividend growth rate was 8.40%. Extended to a five-year horizon, this rate increased to 9.60% per year. And over the past decade, Corning Inc's annual dividends per share growth rate stands at an impressive 12.10%.
Based on Corning Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Corning Inc stock as of today is approximately 4.78%.
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 2024-03-31, Corning Inc's dividend payout ratio is 0.67.