This article first appeared on GuruFocus .
A Deep Dive into the Upcoming Payout and Long-Term Sustainability
Wartsila Corp ( WRTBY ) recently announced a total dividend of $0.06 per share, with the ex-dividend date set for 2026-09-16. This distribution consists of a $0.06 per share cash dividend payable on 2026-10-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's look into Wartsila Corp's dividend performance and assess its sustainability. Understanding these metrics is crucial for value investors aiming to build a reliable income portfolio, as they provide insight into whether a company can maintain or increase its payouts over time.
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Wartsila is a global manufacturer of critical equipment and services for the marine and energy markets, with operations in over 70 countries. Approximately one-half of the group's sales are derived from the sale of services and spare parts through its network of 258 sales and service locations. Wartsila is listed on the Nasdaq Helsinki exchange in Finland. Approximately one in three oceangoing vessels has a Wartsila solution on board, translating into an installed base of over 50,000 vessels and 10,000 customers. This extensive reach and focus on service-based revenue provide a stable foundation for the company's financial performance and its ability to return capital to shareholders.
A Glimpse at Wartsila Corp's Dividend History
Wartsila Corp has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. This long-standing commitment to returning cash to shareholders is a positive signal for income-focused investors. Below is a chart showing annual Dividends Per Share for tracking historical trends. Analyzing this history helps investors understand the cyclicality and reliability of the company's payouts, which is essential for assessing the risk associated with the dividend.
Breaking Down Wartsila Corp's Dividend Yield and Growth
As of today, Wartsila Corp currently has a 12-month trailing dividend yield of 3.70% and a 12-month forward dividend yield of 3.85%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Wartsila Corp's annual dividend growth rate was 22.40%. Extended to a five-year horizon, this rate decreased to 3.10% per year. And over the past decade, Wartsila Corp's annual dividends per share growth rate stands at -3.50%. Based on Wartsila Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Wartsila Corp stock as of today is approximately 4.31%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, Wartsila Corp's dividend payout ratio is 0.91. And this may suggest that the company's dividend may not be sustainable. Wartsila Corp's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wartsila Corp's profitability 8 out of 10 as of 2026-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Wartsila Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Wartsila Corp's revenue per share , combined with the 3-year revenue growth rate , indicates a strong revenue model. Wartsila Corp's revenue has increased by approximately 5.70% per year on average, a rate that outperforms approximately 59.81% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Wartsila Corp's earnings increased by approximately 123.10% per year on average, a rate that outperforms approximately 97.57% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 40.70%, which outperforms approximately 89% of global competitors. These strong growth metrics, particularly the exceptional EPS growth, provide a counterbalance to the high payout ratio, suggesting that future earnings growth could support the dividend if managed prudently.
Next Steps
In conclusion, Wartsila Corp presents a mixed picture for dividend investors. The company boasts a long history of payments, a solid yield, and impressive growth metrics, particularly in earnings and EBITDA, which outperform the majority of its global competitors. However, the high payout ratio of 0.91 raises a red flag regarding the immediate sustainability of the dividend, despite the strong profitability rank. Value investors should weigh these factors carefully, considering the company's robust market position and growth trajectory against the potential risk of a dividend cut. For those looking to identify similar opportunities, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener . Will Wartsila's growth be enough to comfortably cover its generous payout, or will the company need to adjust its distribution policy?
