Understanding the Stability and Growth of Accenture PLC's Dividends
Accenture PLC (ACN, Financial) recently announced a dividend of $1.29 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-17. 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 Accenture PLC's dividend performance and assess its sustainability.
What Does Accenture PLC Do?
Accenture is a leading global IT-services firm that provides consulting, strategy, and technology and operational services. These services run the gamut from aiding enterprises with digital transformation to procurement services to software system integration. The company provides its IT offerings to a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture employs just under 500,000 people throughout 200 cities in 51 countries.
A Glimpse at Accenture PLC's Dividend History
Accenture PLC has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Accenture PLC has increased its dividend each year since 2011, earning it the status of a dividend achiever—a distinction awarded to companies that have raised their dividends annually for at least 13 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Accenture PLC's Dividend Yield and Growth
As of today, Accenture PLC currently has a 12-month trailing dividend yield of 1.31% and a 12-month forward dividend yield of 1.44%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, Accenture PLC's annual dividend growth rate was 11.90%. This rate decreased slightly to 10.70% per year over a five-year period. However, looking at the past decade, Accenture PLC's annual dividends per share growth rate remains impressive at 10.10%. Based on Accenture PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Accenture PLC stock as of today is approximately 2.18%.
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 2023-11-30, Accenture PLC's dividend payout ratio is 0.43.
Accenture PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Accenture PLC's profitability 10 out of 10 as of 2023-11-30, 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. Accenture PLC's growth rank of 10 out of 10 suggests that the company's growth trajectory is strong relative to its competitors.
Revenue is the lifeblood of any company, and Accenture PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Accenture PLC's revenue has increased by approximately 13.60% per year on average, a rate that outperforms approximately 62.32% 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, Accenture PLC's earnings increased by approximately 16.10% per year on average, a rate that outperforms approximately 60.23% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.30%, which outperforms approximately 53.03% of global competitors, suggests a healthy operational efficiency.
Next Steps
In conclusion, Accenture PLC's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a picture of a robust company with a strong commitment to returning value to shareholders. The consistent increase in dividends, combined with a sustainable payout ratio and high profitability and growth ranks, positions Accenture PLC as an attractive option for investors seeking stable dividend income with growth potential. As we consider the future, the company's solid financial health and market position suggest that it is well-equipped to continue its dividend trajectory. Value investors may find Accenture PLC an appealing addition to their portfolios, particularly those focused on long-term income generation and capital appreciation.
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.
