Yahoo Finance Alfa Laval AB's Dividend Analysis
Assessing the Sustainability and Growth of Alfa Laval AB's Dividends
Alfa Laval AB (ALFVY) recently announced a dividend of $0.71 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-04-26. 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 Alfa Laval AB's dividend performance and assess its sustainability.
What Does Alfa Laval AB Do?
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Alfa Laval is a leading manufacturer of highly engineered equipment, primarily in the areas of separation, heat transfer, and fluid handling used by a diverse range of customers spanning the food, water, energy, and marine industry verticals. These products play a key role in a number of industrial processes, and Alfa Laval enjoys a leading position in all three areas. Alfa Laval's history stretches back 140 years to when its first separator was developed. The company is listed on the Stockholm stock exchange.
A Glimpse at Alfa Laval AB's Dividend History
Alfa Laval AB has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Alfa Laval AB's Dividend Yield and Growth
As of today, Alfa Laval AB currently has a 12-month trailing dividend yield of 1.48% and a 12-month forward dividend yield of 1.79%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Alfa Laval AB's dividend yield and five-year growth rate, the 5-year yield on cost of Alfa Laval AB stock as of today is approximately 1.48%.
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, Alfa Laval AB's dividend payout ratio is 0.39.
Alfa Laval AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Alfa Laval AB's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Alfa Laval AB'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 Alfa Laval AB's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Alfa Laval AB's revenue has increased by approximately 15.90% per year on average, a rate that outperforms approximately 72.66% 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, Alfa Laval AB's earnings increased by approximately 22.00% per year on average, a rate that outperforms approximately 63.77% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 4.50%, which outperforms approximately 40.64% of global competitors.
Next Steps
In conclusion, Alfa Laval AB's upcoming dividend, consistent dividend history, and healthy payout ratio paint a picture of a company committed to rewarding its shareholders. Coupled with high profitability and solid growth metrics, Alfa Laval AB appears to be in a strong position to sustain and potentially increase its dividend distributions in the future. Investors considering Alfa Laval AB for its dividend prospects should also evaluate the company's competitive position and strategic initiatives to form a comprehensive view of its potential. As the market landscape evolves, will Alfa Laval AB continue to navigate successfully and maintain its dividend appeal? That's a question value investors might ponder as they assess the company's place in their portfolios.
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.
