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Partners Group Holding AG's Dividend Analysis

Assessing the Sustainability and Growth of Dividends

Partners Group Holding AG (PGPHF) recently announced a dividend of $39 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-24. 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 Partners Group Holding AG's dividend performance and assess its sustainability.

What Does Partners Group Holding AG Do?

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Partners Group Holding AG is a publicly-traded, private-market investment group with worldwide operations, primarily in North America and Europe. The company's investments originate mostly from its private equity, private debt, private real estate, and private infrastructure deal flow. Partners Group emphasizes a high hurdle in its selectivity rate. The company seeks to identify a diverse set of high-quality assets that are best positioned to benefit from sectoral and transformative growth trends across regions. It also takes an active role in supporting its investment acquisitions in executing their respective strategies, often through industry collaboration.

Partners Group Holding AG's Dividend Analysis
Partners Group Holding AG's Dividend Analysis

A Glimpse at Partners Group Holding AG's Dividend History

Partners Group Holding AG has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis, and the company has increased its dividend each year since 2013, earning it the status of a dividend achiever. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Partners Group Holding AG's Dividend Analysis
Partners Group Holding AG's Dividend Analysis

Breaking Down Partners Group Holding AG's Dividend Yield and Growth

As of today, Partners Group Holding AG currently has a 12-month trailing dividend yield of 2.96% and a 12-month forward dividend yield of 3.18%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Partners Group Holding AG's annual dividend growth rate was 13.20%, extended to a five-year horizon, this rate increased to 14.10% per year, and over the past decade, the annual dividends per share growth rate stands at an impressive 20.60%.

Based on Partners Group Holding AG's dividend yield and five-year growth rate, the 5-year yield on cost of Partners Group Holding AG stock as of today is approximately 5.72%.

Partners Group Holding AG's Dividend Analysis
Partners Group Holding AG's Dividend Analysis

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, Partners Group Holding AG's dividend payout ratio is 1.00, which may suggest that the company's dividend may not be sustainable. Partners Group Holding AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Partners Group Holding AG's profitability 9 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. Partners Group Holding AG's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Partners Group Holding AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Partners Group Holding AG's revenue has increased by approximately 11.00% per year on average, a rate that outperforms approximately 54.82% 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, Partners Group Holding AG's earnings increased by approximately 8.00% per year on average, a rate that outperforms approximately 50.1% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 7.80%, which outperforms approximately 53.87% of global competitors.

Conclusion: Evaluating Dividend Sustainability

Considering Partners Group Holding AG's consistent dividend payments, robust dividend growth rate, and strong financial metrics, the company presents a compelling case for dividend investors. However, the high payout ratio poses a risk that potential investors should monitor. With its solid profitability and growth metrics, Partners Group Holding AG appears well-positioned to sustain its dividend payments, making it an attractive option for those seeking steady income streams. 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.