Exploring the Sustainability and Growth of Swatch Group's Dividends
The Swatch Group AG (SWGAY, Financial) recently announced a dividend of $0.36 per share, payable on 2024-05-30, with the ex-dividend date set for 2024-05-13. 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 The Swatch Group AG's dividend performance and assess its sustainability.
What Does The Swatch Group AG Do?
The Swatch Group AG is a powerhouse in the watch manufacturing industry, known for its prestigious brands such as Omega, Longines, Breguet, Tissot, and Swatch. Employing over 33,000 individuals, half of whom are based in Switzerland, the company has a significant impact on the global watch market. Notably, Omega and Longines are The Swatch Group AG's most profitable brands, contributing substantially to the company's revenue.
A Glimpse at The Swatch Group AG's Dividend History
The Swatch Group AG has maintained a consistent dividend payment record since 2010, distributing dividends on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down The Swatch Group AG's Dividend Yield and Growth
The Swatch Group AG currently boasts a 12-month trailing dividend yield of 3.11% and a forward dividend yield of 3.31%, indicating an expected increase in dividend payments over the next year. Over the past three years, the annual dividend growth rate was 2.90%, but this rate declined to -7.40% per year over a five-year period, and -4.10% over the past decade. The 5-year yield on cost for The Swatch Group AG stock is approximately 2.12% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of The Swatch Group AG's dividends is often assessed through its dividend payout ratio, which currently stands at 1.78. This low ratio suggests that the company retains a significant portion of its earnings, bolstering funds for future growth and stability. The Swatch Group AG's profitability rank is 7 out of 10, indicating strong earnings potential relative to its peers, with consistent net profit reported in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
The Swatch Group AG's growth rank of 7 suggests a promising growth trajectory compared to its competitors. A key factor in this outlook is the company's revenue per share and its 3-year revenue growth rate of 11.90% per year, which outperforms approximately 66.98% of global competitors.
Concluding Thoughts on The Swatch Group AG's Dividends
In conclusion, The Swatch Group AG's strategic financial management and strong market presence have contributed to a stable dividend payout history and a promising growth outlook. While the dividend growth rate has seen some fluctuations, the company's low payout ratio and robust profitability suggest that its dividends are sustainable. Investors considering this stock for its dividend prospects may find it a compelling choice for steady income and potential growth.
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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.
