KeyCorp’s Dividend Analysis
KeyCorp (NYSE:KEY) Sets Dividend Payment Date: Investors Anticipate Sustainable Dividend Growth
KeyCorp, an Ohio-based banking institution with assets exceeding $170 billion, recently announced a dividend of $0.21 per share, which will be payable on December 15, 2023. As the ex-dividend date approaches on November 27, investors are eagerly awaiting the payout while closely examining KeyCorp’s dividend history, yield, and growth rates. Utilizing data from GuruFocus, let’s delve into KeyCorp’s dividend performance and assess its sustainability.
KeyCorp has established a strong track record of consistent dividend payments since 1985, distributing dividends on a quarterly basis. The company has achieved the distinction of being a dividend achiever, which recognizes companies that have consistently increased their dividends for at least 13 consecutive years. A chart showcasing annual Dividends Per Share reflects these historical trends.
At present, KeyCorp boasts an impressive 12-month trailing dividend yield of 6.81% and a corresponding 12-month forward dividend yield, indicating expectations of steady dividend payments in the coming year. Over the past three years, KeyCorp’s annual dividend growth rate stood at 3.60%, which increased to 13.90% per year over a five-year span, and an impressive 17.80% over the past decade. As a result, the 5-year yield on cost for KeyCorp stock stands at approximately 13.05%.
To assess the sustainability of its dividends, attention turns to KeyCorp’s dividend payout ratio, which currently stands at 0.67 as of September 30, 2023. This indicates that the company retains a significant portion of its earnings, allowing for future growth while providing a cushion against economic downturns. KeyCorp holds a favorable profitability rank of 5 out of 10, affirming its financial stability, with positive net income reported annually for the past decade.
KeyCorp’s growth rank of 5 out of 10 reflects a fair growth outlook. The company’s revenue per share and three-year revenue growth rate of 6.90% per year surpasses 53.61% of global competitors. Similarly, the three-year EPS growth rate at 6.10% per year outperforms 42.19% of global competitors. Moreover, KeyCorp’s five-year EBITDA growth rate of 11.50% surpasses 61.5% of global competitors, indicating a robust trajectory for sustained dividend payments.
Taking into account KeyCorp’s dividend payments, growth rate, payout ratio, profitability, and growth metrics, the company showcases a solid history of delivering value to shareholders. Its consistent dividend growth, coupled with a prudent payout ratio and fair profitability, position KeyCorp as an attractive choice for value investors seeking income-generating stocks. Furthermore, the company’s growth metrics reinforce the likelihood of ongoing dividend sustainability. As investors evaluate KeyCorp for their portfolios, utilizing tools such as GuruFocus Premium’s High Dividend Yield Screener may aid in identifying similar investment opportunities.
In summary, KeyCorp’s upcoming dividend payment presents an opportunity for investors to benefit from the company’s long-standing commitment to returning value to its shareholders. With a focus on maintaining a prudent dividend payout ratio, bolstered by a solid financial foundation and promising growth outlook, KeyCorp remains positioned to sustain its dividend payments in the foreseeable future.
