Yahoo Finance Bouygues's Dividend Analysis
Understanding the Dividend Dynamics of Bouygues (BOUYY)
Bouygues (BOUYY) recently announced a dividend of $0.4 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-04-29. 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 Bouyguess dividend performance and assess its sustainability.
What Does Bouygues Do?
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Bouygues is a French conglomerate made up of a disparate range of assets: a construction business, a TV business, and a telecom business. It is one of the biggest construction companies in France and Europe with construction sales of around EUR 25 billion-EUR 30 billion and one of the four telecom operators in France, with both mobile and fixed operations and EUR 6 billion in revenue. It is also the owner of TF1, one of the main media and TV companies in France.
A Glimpse at Bouygues's Dividend History
Bouygues has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bouygues's Dividend Yield and Growth
As of today, Bouygues currently has a 12-month trailing dividend yield of 5.16% and a 12-month forward dividend yield of 5.26%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bouygues's annual dividend growth rate was 1.90%. Extended to a five-year horizon, this rate decreased to 1.30% per year. And over the past decade, Bouygues's annual dividends per share growth rate stands at 1.30%.
Based on Bouygues's dividend yield and five-year growth rate, the 5-year yield on cost of Bouygues stock as of today is approximately 5.50%.
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, Bouygues's dividend payout ratio is 0.64.
Bouygues's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bouygues's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. 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. Bouygues'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 Bouygues's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bouygues's revenue has increased by approximately 17.80% per year on average, a rate that outperforms approximately 80.28% 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, Bouygues's earnings increased by approximately 2.90% per year on average, a rate that outperforms approximately 42.97% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -7.20%, which outperforms approximately 23.01% of global competitors, although negative, may suggest areas for potential improvement or strategic shifts.
Next Steps
In conclusion, Bouygues's upcoming dividend distribution, alongside its historical dividend consistency, places it as an attractive option for income-focused investors. The company's dividend growth rate, while modest, combined with a reasonable payout ratio and strong profitability, signals a sustainable dividend policy. Furthermore, Bouygues's solid growth metrics provide reassurance about its future prospects. However, investors should also consider the broader economic context, industry-specific challenges, and Bouygues's strategic responses when evaluating the stock's overall potential. For those seeking to expand their dividend portfolio, 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.
