Exploring the Sustainability and Growth of Arcadis NV's Dividend Payments
Arcadis NV (ARCVF, Financial) recently announced a dividend of $0.85 per share, payable on 2024-05-16, with the ex-dividend date set for 2024-05-10. 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 Arcadis NV's dividend performance and assess its sustainability.
What Does Arcadis NV Do?
Arcadis NV designs, engineers, and provides solutions for various construction and environmental projects. It constructs advanced buildings, plants, and transportation networks, and delivers management services for each project. Planning and cost management solutions help customers meet economic objectives and address potential operational or regulatory liabilities. Arcadis operates four business lines: infrastructure, water, environment, and buildings. It designs drinking water supply systems and treatment technologies for waste water. The segments of the company are Places, Mobility, Resilience and Intelligence. The company delivers services all over the world, with no single customer or country constituting a majority of total sales.
A Glimpse at Arcadis NV's Dividend History
Arcadis NV has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Arcadis NV's Dividend Yield and Growth
As of today, Arcadis NV currently has a 12-month trailing dividend yield of 1.23% and a 12-month forward dividend yield of 1.42%. This suggests an expectation of increased dividend payments over the next 12 months. Arcadis NV's dividend yield of 1.23% is near a 10-year low and underperforms 78.11% of global competitors in the Construction industry, suggesting that the company's dividend yield may not be a compelling proposition for income investors.
Based on Arcadis NV's dividend yield and five-year growth rate, the 5-year yield on cost of Arcadis NV stock as of today is approximately 1.23%.
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, Arcadis NV's dividend payout ratio is 0.29.
Arcadis NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Arcadis NV's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Arcadis NV's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Arcadis NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Arcadis NV's revenue has increased by approximately 15.00% per year on average, a rate that outperforms approximately 75.52% 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, Arcadis NV's earnings increased by approximately 20.10% per year on average, a rate that outperforms approximately 66.34% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 20.10%, which outperforms approximately 77.71% of global competitors.
Next Steps
Considering Arcadis NV's consistent dividend payments, improving dividend growth rate, manageable payout ratio, strong profitability, and robust growth metrics, the company appears well-positioned to maintain its dividend payouts in the foreseeable future. Investors seeking to expand their portfolio with dividend-yielding stocks may find Arcadis NV an attractive option, provided they are comfortable with the current yield levels. For further exploration of high-dividend yield opportunities, 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.
