Yahoo Finance UniCredit SpA's Dividend Analysis
Assessing the Sustainability of UniCredit SpA's Upcoming Dividend
UniCredit SpA (UNCRY) recently announced a dividend of $0.96 per share, payable on an unannounced future date, with the ex-dividend date set for 2024-04-24. 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 UniCredit SpA's dividend performance and assess its sustainability.
What Does UniCredit SpA Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
UniCredit is one of the two largest Italian retail and commercial banks, but roughly half of its operations are outside Italy. It has a strong presence in Germany, Austria, and Central and Eastern Europe. It generates most of its revenue from retail banking, but also maintains a sizable corporate and investment bank.
A Glimpse at UniCredit SpA's Dividend History
UniCredit SpA has maintained a consistent dividend payment record since 2021, distributing dividends on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down UniCredit SpA's Dividend Yield and Growth
As of today, UniCredit SpA's 12-month trailing dividend yield stands at 2.83%, with a 12-month forward dividend yield of 5.02%. This indicates an expectation of increased dividend payments over the next 12 months. The 5-year yield on cost of UniCredit SpA stock as of today is approximately 2.83%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. UniCredit SpA's dividend payout ratio is currently 0.18, suggesting that the company retains a significant part of its earnings for future growth and unexpected downturns. Additionally, UniCredit SpA's profitability rank is 5 out of 10, indicating fair profitability with net profit reported in 8 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividend sustainability, robust growth metrics are essential. UniCredit SpA's growth rank of 5 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with revenue increasing by approximately 18.60% per year on average, outperforming approximately 84.7% of global competitors.
Next Steps: Evaluating UniCredit SpA's Dividend Future
In conclusion, UniCredit SpA's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture for investors. The consistent dividend history, coupled with a moderate yield and a low payout ratio, suggests that the dividends are sustainable. The fair profitability and growth outlook further support the potential for ongoing dividend payments. However, investors should continue to monitor these factors, especially in light of the expected increase in dividend yield. For those seeking high-dividend yield stocks, GuruFocus Premium offers tools such as the High Dividend Yield Screener to discover similar investment opportunities.
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.
