Yahoo Finance Aeroports de Paris SA's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Aeroports de Paris SA
Aeroports de Paris SA (ARRPY) recently announced a dividend of $0.41 per share, payable on June 27, 2024, with the ex-dividend date set for June 7, 2024. 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 delve into Aeroports de Paris SA's dividend performance and assess its sustainability.
What Does Aeroports de Paris SA Do?
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Aeroports de Paris SA is a prominent French airport operator, owning major commercial airports in Paris including Charles de Gaulle, Orly, and Paris-Le Bourget. The company also holds stakes in several international airports, such as a collection of Turkish Airports through TAV Airports, and a 31% indirect stake in Indian airports in New Delhi and Hyderabad via its recent acquisition of GMR Airports. The group's revenue streams are categorized into regulated, including fees from takeoff, landing, passenger services, and security, and non-regulated, deriving from commercial activities like retail, food and beverage, and advertising. In 2019, the group serviced 108 million passengers through its Parisian airport network.
A Glimpse at Aeroports de Paris SA's Dividend History
Aeroports de Paris SA has maintained a consistent dividend payment record since 2023, with dividends currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Aeroports de Paris SA's Dividend Yield and Growth
Aeroports de Paris SA currently boasts a 12-month trailing dividend yield of 2.27% and a forward dividend yield of 2.80%, indicating an expected increase in dividend payments over the next 12 months. The 5-year yield on cost of Aeroports de Paris SA stock as of today is approximately 2.27%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, one must examine the company's payout ratio. The dividend payout ratio of Aeroports de Paris SA, which is 0.52 as of December 31, 2023, suggests that the company retains a significant part of its earnings for future growth and unforeseen downturns. Additionally, Aeroports de Paris SA's profitability rank is 7 out of 10, indicating good profitability prospects, highlighted by its consistent net profit in 8 out of the past 10 years.
Growth Metrics: The Future Outlook
The sustainability of dividends is closely tied to robust growth metrics. Aeroports de Paris SA's growth rank of 7 out of 10 suggests a favorable growth trajectory compared to its competitors. The company's revenue per share and the 3-year revenue growth rate of approximately 37.10% per year, outperforming about 88.7% of global competitors, further bolsters this outlook.
Conclusion
Considering Aeroports de Paris SA's consistent dividend payments, promising growth rate, stable payout ratio, and robust profitability, the company presents an appealing prospect for dividend investors. As the company continues to expand and strengthen its financial health, it remains a noteworthy candidate for those seeking stable dividend income. For further exploration of high-dividend yield stocks, GuruFocus Premium users can utilize 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.
