Exploring the Dividend History, Yield, and Growth Rates of Compagnie Financiere Richemont SA (CFRUY, Financial)
Compagnie Financiere Richemont SA (CFRUY) recently announced a dividend of $0.11 per share, payable on 2023-10-13, with the ex-dividend date set for 2023-09-21. 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 deep dive into Compagnie Financiere Richemont SA's dividend performance and assess its sustainability.
Company Overview: Compagnie Financiere Richemont SA
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up 85% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 67% of revenue and over 86% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc.
Compagnie Financiere Richemont SA's Dividend History
Compagnie Financiere Richemont SA has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding Compagnie Financiere Richemont SA's Dividend Yield and Growth
As of today, Compagnie Financiere Richemont SA currently has a 12-month trailing dividend yield of 1.75% and a 12-month forward dividend yield of 2.13%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Compagnie Financiere Richemont SA's annual dividend growth rate was 6.00%. Extended to a five-year horizon, this rate decreased to 1.60% per year. And over the past decade, Compagnie Financiere Richemont SA's annual dividends per share growth rate stands at 9.20%.
Based on Compagnie Financiere Richemont SA's dividend yield and five-year growth rate, the 5-year yield on cost of Compagnie Financiere Richemont SA stock as of today is approximately 1.89%.
Evaluating Dividend Sustainability: 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 2023-03-31, Compagnie Financiere Richemont SA's dividend payout ratio is 0.34.
Compagnie Financiere Richemont SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Compagnie Financiere Richemont SA's profitability 9 out of 10 as of 2023-03-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Compagnie Financiere Richemont SA's Growth Metrics and Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Compagnie Financiere Richemont SA's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Compagnie Financiere Richemont SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Compagnie Financiere Richemont SA's revenue has increased by approximately 8.80% per year on average, a rate that outperforms than approximately 66.28% 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, Compagnie Financiere Richemont SA's earnings increased by approximately 56.90% per year on average, a rate that outperforms than approximately 87.45% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.90%, which outperforms than approximately 62.6% of global competitors.
Conclusion
In conclusion, Compagnie Financiere Richemont SA's consistent dividend payments, solid dividend growth rate, reasonable payout ratio, high profitability, and impressive growth metrics indicate a promising future for its dividends. These factors, combined with the company's robust revenue model and earnings growth, suggest that the company's dividends are sustainable in the long run. Investors looking for high-dividend yield stocks can consider Compagnie Financiere Richemont SA as a potential option.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
