Ardmore Shipping Corporation (NYSE:ASC) has announced that its upcoming ex-dividend date is scheduled for November 29, with a subsequent dividend payment to be made on December 15. Shareholders who own the stock before the ex-dividend date will be eligible for a dividend of $0.16 per share. This dividend contributes to a total annual distribution of $0.64 per share from last year, offering a yield of 4.7% based on the current stock price of $13.51.
The sustainability of the dividend appears strong, as evidenced by a profit payout ratio of 34% and a free cash flow payout ratio of 24%. Furthermore, Ardmore Shipping's earnings have grown impressively, with an annual growth rate of 64% over the past five years, which suggests that the company's dividend payments are well-supported despite having experienced at least one cut in the past decade.
Investors might also take note of Ardmore Shipping's history of increasing its dividends. Over the last ten years, the company has raised its dividend by an average of about 4.8% annually, a trend that reflects both robust earnings and strategic reinvestments back into the business.
InvestingPro Insights
As Ardmore Shipping Corporation (NYSE:ASC) prepares to pay dividends to its shareholders, InvestingPro data and tips provide a deeper dive into the company's financial health and future prospects. With a market capitalization of $557.95 million and a compelling price-to-earnings (P/E) ratio of 3.92, the company presents as an attractive investment for value-oriented investors. The adjusted P/E ratio for the last twelve months as of Q3 2023 stands at 3.95, reinforcing the company's value proposition in the market.
InvestingPro Tips highlight the company's strong fundamentals, such as consistently increasing earnings per share and a valuation that implies a robust free cash flow yield. Additionally, analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company's financial performance. These insights suggest that Ardmore Shipping's dividend yield of 4.7% is well-supported.
Revenue growth of 17.67% over the last twelve months as of Q3 2023 is also noteworthy, although it's important to recognize that analysts anticipate a sales decline in the current year. Despite this, the company's profitability over the last twelve months and a strong return over the last five years indicate a resilient business model.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips, with a total of 11 tips available for Ardmore Shipping Corporation at https://www.investing.com/pro/ASC. Currently, InvestingPro subscription is on a special Black Friday sale, offering a discount of up to 55%, providing an opportune moment for investors to access valuable insights at a reduced cost.
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