Yahoo Finance Accor SA's Dividend Analysis
Exploring the Sustainability and Growth of Accor SA's Dividends
Accor SA (ACRFF) recently announced a dividend of $1.18 per share, payable on 2024-06-07, with the ex-dividend date set for 2024-06-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Accor SA's dividend performance and assess its sustainability.
What Does Accor SA Do?
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Accor operates 821,518 rooms across roughly 50 brands addressing the economy through luxury segments as of Dec. 31, 2023. Ibis (economy scale) is the largest brand (35% of total rooms at the end of 2023), followed by midscale brands Mercure (16%) and Novotel (13%). FRHI offers additional luxury and North American exposure. After the sale of the majority of HotelInvest (owned assets) in 2018-19, the majority of total EBITDA comes from asset-light managed and franchised hotels. Europe and North Africa represent 44% of rooms, Asia-Pacific 34%, the Americas 13%, and India, Middle East, and Africa 10%. Premium, midscale, and economy are 86% of total rooms, while luxury and lifestyle are the remaining 14%.
A Glimpse at Accor SA's Dividend History
Accor SA has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Accor SA's Dividend Yield and Growth
As of today, Accor SA currently has a 12-month trailing dividend yield of 1.76% and a 12-month forward dividend yield of 2.94%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Accor SA's dividend yield and five-year growth rate, the 5-year yield on cost of Accor SA stock as of today is approximately 1.76%.
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 2023-12-31, Accor SA's dividend payout ratio is 0.36.
Accor SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Accor SA's profitability 7 out of 10 as of 2023-12-31, 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. Accor SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Accor SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Accor SA's revenue has increased by approximately 42.10% per year on average, a rate that outperforms approximately 78.19% of global competitors.
Conclusion
With a robust dividend history, a promising growth outlook, and strong profitability metrics, Accor SA appears well-positioned to maintain its dividend payments. Investors considering this stock for its dividend prospects should feel reassured by Accor SA's financial health and strategic positioning. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
