Yahoo Finance Standard Bank Group Ltd's Dividend Analysis
Assessing the Dividend Profile of Standard Bank Group Ltd (SGBLY)
Standard Bank Group Ltd (SGBLY) recently announced a dividend of $0.39 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-04-11. 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 Standard Bank Group Ltd's dividend performance and assess its sustainability.
What Does Standard Bank Group Ltd Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Standard Bank Group Ltd provides banking and other financial services. Its operating model is client-led and structured around its business units which are Personal & Private Banking (PPB), Business and Commercial Banking (BCB), Corporate and Investment Banking (CIB), and Insurance & Asset Management (IAM). It offers credit cards, mortgages, vehicle loans, insurance, and other lending and transactional products. The company generates nearly all its income in Africa.
A Glimpse at Standard Bank Group Ltd's Dividend History
Standard Bank Group Ltd has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Standard Bank Group Ltd's Dividend Yield and Growth
As of today, Standard Bank Group Ltd currently has a 12-month trailing dividend yield of 7.43% and a 12-month forward dividend yield of 7.53%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Standard Bank Group Ltd's annual dividend growth rate was 36.80%. Extended to a five-year horizon, this rate decreased to 6.30% per year. And over the past decade, Standard Bank Group Ltd's annual dividends per share growth rate stands at 6.70%.
Based on Standard Bank Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Standard Bank Group Ltd stock as of today is approximately 10.08%.
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, Standard Bank Group Ltd's dividend payout ratio is 0.53.
Standard Bank Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Standard Bank Group Ltd's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. 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. Standard Bank Group Ltd'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 Standard Bank Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Standard Bank Group Ltd's revenue has increased by approximately 14.30% per year on average, a rate that outperforms approximately 76.68% 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, Standard Bank Group Ltd's earnings increased by approximately 36.80% per year on average, a rate that outperforms approximately 82.74% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 8.50%, which outperforms approximately 56.39% of global competitors, solidifies its position in the market.
Next Steps
In conclusion, the analysis of Standard Bank Group Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics paints a picture of a robust financial institution with a strong commitment to returning value to its shareholders. The company's consistent dividend history, combined with a fair growth outlook and a solid profitability track record, suggests that its dividends are on a sustainable path. Investors considering Standard Bank Group Ltd for its dividend prospects should feel reassured by these findings. As always, it's essential to conduct thorough research and consider all aspects of a company's financial health before making investment decisions. For those interested in exploring further, 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.
