LCI Industries (NYSE:LCII) is poised to reward its shareholders with a $1.05 per share dividend on December 15th, reflecting a yield of 3.7%. Despite a historical payout ratio of 215%, which exceeds twice its earnings, the company's dividends appear secure, underpinned by robust free cash flow that sees only a quarter of it distributed as dividends. Analysts project an earnings per share (EPS) increase that could reduce the future payout ratio to a more manageable 52%.
Since beginning its dividend payments in 2013, LCI Industries has maintained a compound annual growth rate (CAGR) of approximately 7.7%, with dividends rising from $2.00 to $4.20 annually. This growth trajectory has been achieved in spite of a roughly 20% annual contraction in EPS over the past five years. However, with forecasts indicating an imminent rise in earnings within the next year, there is a cautiously optimistic outlook for the sustainability of LCI's dividends, even amid concerns about potential future growth constraints linked to past EPS downturns.
InvestingPro Insights
As an enhancement to the article, InvestingPro offers some valuable insights and tips. Notably, LCII has consistently raised its dividend for 6 consecutive years, a testament to its commitment to shareholder value, even amidst market uncertainties. Additionally, the company's liquid assets exceed short-term obligations, indicating a strong financial position that can potentially support its dividend payments.
InvestingPro's real-time data reveals that LCII has a market capitalization of $2890M USD, and is trading at a P/E ratio of 58.76, which may be considered high. The company's revenue as of Q3 2023 stands at $3841.61M USD, despite a decline of -30.48% over the last twelve months. However, the company has managed to maintain a gross profit margin of 19.84% over the same period.
InvestingPro provides a wealth of additional insights and tips for investors, with over 10 more tips available specifically for LCII. As a special Black Friday offer, InvestingPro is offering up to a 55% discount on its subscription, providing an excellent opportunity for investors to gain access to valuable real-time data and insights.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.