Advertisement
Australia markets closed
  • ALL ORDS

    7,974.80
    -27.70 (-0.35%)
     
  • ASX 200

    7,724.30
    -25.40 (-0.33%)
     
  • AUD/USD

    0.6606
    -0.0031 (-0.47%)
     
  • OIL

    78.92
    +0.30 (+0.38%)
     
  • GOLD

    2,343.90
    +25.90 (+1.12%)
     
  • Bitcoin AUD

    101,544.23
    -984.64 (-0.96%)
     
  • CMC Crypto 200

    1,429.90
    +12.03 (+0.85%)
     
  • AUD/EUR

    0.6180
    +0.0007 (+0.12%)
     
  • AUD/NZD

    1.0779
    +0.0026 (+0.24%)
     
  • NZX 50

    11,864.89
    -7.75 (-0.07%)
     
  • NASDAQ

    19,576.92
    +111.74 (+0.57%)
     
  • FTSE

    8,159.17
    -4.50 (-0.06%)
     
  • Dow Jones

    38,647.10
    -65.11 (-0.17%)
     
  • DAX

    18,055.17
    -210.51 (-1.15%)
     
  • Hang Seng

    17,941.78
    -170.85 (-0.94%)
     
  • NIKKEI 225

    38,814.56
    +94.09 (+0.24%)
     

Intesa Sanpaolo's Dividend Analysis

Exploring the Sustainability and Growth of Dividends

Intesa Sanpaolo (ISNPY) recently announced a dividend of $0.97 per share, payable on an unspecified date, with the ex-dividend date set for 2024-05-20. As investors anticipate this forthcoming payment, it is crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will scrutinize the performance and sustainability of Intesa Sanpaolo's dividends.

What Does Intesa Sanpaolo Do?

ADVERTISEMENT

Intesa Sanpaolo is an Italian banking group formed from the merger of Banca Intesa and Sanpaolo IMI in 2007. While primarily dominating the Italian market, Intesa Sanpaolo has been expanding its footprint in Central and Eastern Europe. The company is a major player in the Italian savings market through its private banking, asset management, and life insurance operations, contributing approximately 25% of its revenue. Although Intesa Sanpaolo has a substantial corporate banking sector, its exposure to securities trading and underwriting is limited.

Intesa Sanpaolo's Dividend Analysis
Intesa Sanpaolo's Dividend Analysis

A Glimpse at Intesa Sanpaolo's Dividend History

Since 2021, Intesa Sanpaolo has upheld a steady record of dividend payments, distributed bi-annually. Below is a chart depicting the annual Dividends Per Share to illustrate historical trends.

Intesa Sanpaolo's Dividend Analysis
Intesa Sanpaolo's Dividend Analysis

Breaking Down Intesa Sanpaolo's Dividend Yield and Growth

Currently, Intesa Sanpaolo boasts a trailing dividend yield of 6.16% and a forward dividend yield of 7.75%, indicating anticipated growth in dividend distributions over the next 12 months. The 5-year yield on cost for Intesa Sanpaolo stock is also approximately 6.16%.

Intesa Sanpaolo's Dividend Analysis
Intesa Sanpaolo's Dividend Analysis

The Sustainability Question: Payout Ratio and Profitability

The sustainability of dividends is often gauged by the dividend payout ratio. A lower ratio suggests that a significant portion of earnings is retained, which supports future growth and buffers against downturns. As of 2024-03-31, Intesa Sanpaolo's dividend payout ratio stands at 0.51. Additionally, the company's profitability rank is 5 out of 10, indicating fair profitability with consistent positive net income over the past decade.

Growth Metrics: The Future Outlook

For dividends to be sustainable, a company must demonstrate robust growth metrics. Intesa Sanpaolo's growth rank of 5 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate of 5.40% per year indicate a strong revenue model, albeit underperforming 58.1% of global competitors. The 3-year EPS growth rate of 34.40% per year and a 5-year EBITDA growth rate of 10.10% further support the company's potential for sustaining dividends.

Conclusion

Intesa Sanpaolo's consistent dividend payments, coupled with a prudent payout ratio and solid profitability, underscore its capability to sustain dividend distributions. However, while its growth metrics show promise, they also suggest areas where improvement is necessary to maintain its competitive edge. For investors seeking high-dividend yield stocks, exploring options through the High Dividend Yield Screener on GuruFocus may provide valuable insights.

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.