Yahoo Finance Bawag Group AG's Dividend Analysis
Deciphering the Dividend Dynamics of Bawag Group AG
Bawag Group AG (BWAGF) recently announced a dividend of $5 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-04-10. 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 Bawag Group AG's dividend performance and assess its sustainability.
What Does Bawag Group AG Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Bawag Group AG provides banking and financial products and services. The company serves retail, small business, and corporate customers offering comprehensive savings, payment, lending, leasing, investment, building society, and insurance products and services through various online and offline channels. The operating business segments of the company are Retail and SME which generates key revenue; Corporates, Real Estate and Public Sector; Treasury and Corporate Center.
A Glimpse at Bawag Group AG's Dividend History
Bawag Group AG 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 Bawag Group AG's Dividend Yield and Growth
As of today, Bawag Group AG currently has a 12-month trailing dividend yield of 6.21% and a 12-month forward dividend yield of 8.31%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Bawag Group AG's dividend yield and five-year growth rate, the 5-year yield on cost of Bawag Group AG stock as of today is approximately 6.21%.
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, Bawag Group AG's dividend payout ratio is 0.46.
Bawag Group AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bawag Group AG's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each of 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. Bawag Group AG's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Bawag Group AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bawag Group AG's revenue has increased by approximately 10.60% per year on average, a rate that outperforms approximately 65.39% 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, Bawag Group AG's earnings increased by approximately 36.50% per year on average, a rate that outperforms approximately 82.96% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 8.00%, which outperforms approximately 54.6% of global competitors.
Next Steps
In conclusion, Bawag Group AG's robust dividend yield, consistent dividend growth, and moderate payout ratio paint a picture of a company committed to returning value to shareholders. Coupled with a fair profitability rank and strong growth metrics, Bawag Group AG appears to be well-positioned to maintain its dividend payments. Investors should consider these factors alongside their own investment strategy and risk tolerance. For those interested in high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener for further research.
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.
