Investors interested in receiving Dolby Laboratories ' (NYSE:DLB) upcoming dividend payout have until November 27 to acquire shares to be eligible for the December 5 distribution. The company has announced a dividend of $0.30 per share, maintaining its reputation for consistent shareholder returns. Currently, Dolby's dividends represent a trailing yield of around 1.4% based on the recent share price of $85.
The financial health of Dolby Laboratories appears robust, with a payout ratio that is comfortably sustainable at 53% of earnings and just 31% of free cash flow. This suggests that the company is retaining enough of its income to fund future growth while rewarding shareholders.
Dolby's track record over the past five years shows a compelling annual earnings growth of 39%, which could indicate room for further dividend increases. In fact, dividends have seen an average annual rise of 13% over the last nine years, reflecting a strong commitment to growing shareholder value.
InvestingPro Insights
Investors considering Dolby Laboratories' (NYSE:DLB) dividend prospects will find additional insights from InvestingPro particularly illuminating. With a market capitalization of $8.1 billion, Dolby demonstrates its financial strength. The company's commitment to shareholder value is further evidenced by a dividend yield of 1.41% and a notable dividend growth of 8% over the last twelve months as of Q1 2023.
Two InvestingPro Tips stand out for Dolby Laboratories. Firstly, the company's revenue growth has been accelerating, which may suggest potential for continued dividend increases in the future. Secondly, Dolby has been trading at a high P/E ratio relative to near-term earnings growth, with a P/E ratio of 33.45 for the last twelve months as of Q1 2023, which investors should consider when evaluating the stock's valuation.
For those looking for more comprehensive analysis, InvestingPro offers additional insights. In fact, there are 14 InvestingPro Tips available for Dolby Laboratories, providing a deeper dive into the company's performance metrics and future outlook. And for those interested in seizing the opportunity, InvestingPro subscription is now on a special Black Friday sale, offering a discount of up to 55%.
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