Insight into Banco Santander SA's Upcoming Dividend and Financial Health
Banco Santander SA (SAN, Financial) recently announced a dividend of $0.10 per share, payable on 2024-05-07, with the ex-dividend date set for 2024-04-29. 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 Banco Santander SA's dividend performance and assess its sustainability.
What Does Banco Santander SA Do?
Banco Santander SA focuses on retail and commercial banking. With a significant operation in Latin America, particularly Brazil, the company also has a substantial presence in continental Europe, mainly in Spain and Portugal. Banco Santander SA has expanded into the UK following the acquisition of Abbey building society and operates a vehicle finance business and a regional bank in the Northeastern states of the US.
A Glimpse at Banco Santander SA's Dividend History
Banco Santander SA has maintained a consistent dividend payment record since 2021, distributing dividends bi-annually. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Banco Santander SA's Dividend Yield and Growth
As of today, Banco Santander SA currently has a 12-month trailing dividend yield of 2.91% and a 12-month forward dividend yield of 4.02%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Banco Santander SA's dividend yield and five-year growth rate, the 5-year yield on cost of Banco Santander SA stock as of today is approximately 2.91%.
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 2023-12-31, Banco Santander SA's dividend payout ratio is 0.21.
Banco Santander SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Banco Santander SA's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
For the sustainability of dividends, a company must have robust growth metrics. Banco Santander SA's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Banco Santander SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Banco Santander SA's revenue has increased by approximately 10.90% per year on average, a rate that outperforms approximately 65.84% of global competitors.
Next Steps
Considering Banco Santander SA's consistent dividend payments, attractive growth rate, prudent payout ratio, and fair profitability and growth metrics, the company's dividend policy appears sustainable in the near term. Investors seeking income-generating investments may find Banco Santander SA an appealing option, especially with the prospect of rising dividend yields. However, as with any investment, it is crucial to conduct thorough research and consider the overall financial health and market conditions before making any decisions. 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.
