Assessing the Upcoming Dividend and Historical Performance of LVMUY
Lvmh Moet Hennessy Louis Vuitton SE (LVMUY, Financial) recently announced a dividend of $1.2 per share, payable on 2023-12-21, with the ex-dividend date set for 2023-11-30. 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 Lvmh Moet Hennessy Louis Vuitton SE's dividend performance and assess its sustainability.
What Does Lvmh Moet Hennessy Louis Vuitton SE Do?
LVMH is a global producer and distributor of luxury goods. It operates six segments: fashion and leather goods, its largest and oldest; watches and jewelry; wines and spirits; perfumes and cosmetics; selective retailing (including Sephora and airport duty-free retailer DFS); and other (including publishing). Higher-profile brands include Louis Vuitton, Bulgari, Fendi, Givenchy, Tag Heuer, Hennessy, Moet & Chandon, Glenmorangie, Sephora, and Benefit. LVMH operates more than 5,000 stores around the globe and is headquartered in Paris.
A Glimpse at Lvmh Moet Hennessy Louis Vuitton SE's Dividend History
Lvmh Moet Hennessy Louis Vuitton SE has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Lvmh Moet Hennessy Louis Vuitton SE's Dividend Yield and Growth
As of today, Lvmh Moet Hennessy Louis Vuitton SE currently has a 12-month trailing dividend yield of 1.75% and a 12-month forward dividend yield of 1.85%. This suggests an expectation of increasing dividend payments over the next 12 months. Over the past three years, Lvmh Moet Hennessy Louis Vuitton SE's annual dividend growth rate was 24.60%. Extended to a five-year horizon, this rate decreased to 17.80% per year. And over the past decade, Lvmh Moet Hennessy Louis Vuitton SE's annual dividends per share growth rate stands at an impressive 12.80%.
Based on Lvmh Moet Hennessy Louis Vuitton SE's dividend yield and five-year growth rate, the 5-year yield on cost of Lvmh Moet Hennessy Louis Vuitton SE stock as of today is approximately 3.97%.
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 2023-06-30, Lvmh Moet Hennessy Louis Vuitton SE's dividend payout ratio is 0.38. Lvmh Moet Hennessy Louis Vuitton SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Lvmh Moet Hennessy Louis Vuitton SE's profitability 10 out of 10 as of 2023-06-30, 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. Lvmh Moet Hennessy Louis Vuitton SE's growth rank of 10 out of 10 suggests that the company's growth trajectory is commendable relative to its competitors. Revenue is the lifeblood of any company, and Lvmh Moet Hennessy Louis Vuitton SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Lvmh Moet Hennessy Louis Vuitton SE's revenue has increased by approximately 13.90% per year on average, a rate that outperforms approximately 74.64% 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, Lvmh Moet Hennessy Louis Vuitton SE's earnings increased by approximately 25.60% per year on average, a rate that outperforms approximately 69.89% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 19.70%, which outperforms approximately 71.81% of global competitors.
Next Steps
In conclusion, Lvmh Moet Hennessy Louis Vuitton SE's upcoming dividend, historical dividend growth, moderate payout ratio, strong profitability, and robust growth metrics paint a picture of a company that is not only committed to returning value to its shareholders but also positioned to sustain and potentially increase its dividend payments. The company's strategic positioning within the luxury goods market, combined with its financial health, indicates that it may continue to be a compelling choice for value investors seeking dividend income. As we consider the future of LVMUY, one might ask: How will the company's continued growth and profitability influence its dividend strategy in the years to come? For more detailed analysis and dividend screening tools, GuruFocus Premium users can utilize 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.
