Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Amcor to pay $0.125 per share dividend with a 5.4% yield in December

EditorHari G
Published 11/04/2023, 09:24 AM
Updated 11/04/2023, 09:24 AM
© Reuters.

Amcor plc (NYSE:AMCR) has announced that it will pay a dividend of $0.125 per share on December 12, offering a significant yield of 5.4%. This dividend payout follows the company's strategy of prioritizing returns to shareholders over reinvestment for growth.

The forthcoming dividend represents a substantial portion of the company's earnings, covering 78% of its free cash flows. Analysts are forecasting a 5% increase in earnings per share (EPS) for the upcoming year, and they expect a sustainable payout ratio around 71%.

Despite having a relatively short history of dividend payments, Amcor has maintained a consistent dividend since 2019. The annual payouts have gradually increased from $0.48 to $0.49 per share over the years.

Over the past five years, Amcor has demonstrated an impressive annual EPS growth rate of 7.6%. However, the high payout ratio could potentially limit future growth opportunities for the company.

Investors are advised to exercise cautious optimism due to the short history of dividends and potential sustainability concerns related to Amcor's dividend payments.

InvestingPro Insights

According to InvestingPro's real-time data, Amcor plc has a market capitalization of 12.96B USD and a P/E Ratio of 13.88. The company also has a Price / Book ratio of 3.18 as of Q1 2024. These metrics suggest that the firm is trading at a relatively low valuation compared to its earnings and book value.

InvestingPro Tips highlight that Amcor has been consistently increasing its earnings per share and has raised its dividend for five consecutive years. This aligns with the company's strategy of prioritizing returns to shareholders over reinvestment for growth. Additionally, the company's management has been aggressively buying back shares, indicating their confidence in the firm's future performance.

With these insights, it's clear that Amcor is committed to providing value to its shareholders through dividends and share buybacks. To get more insights like these, consider exploring InvestingPro, which offers numerous additional tips for a wide range of companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.