Exploring the Sustainability and Growth of Dassault Aviation SA's Dividends
Dassault Aviation SA (DUAVF, Financial) recently announced a dividend of $3.37 per share, payable on 2024-05-22, with the ex-dividend date set for 2024-05-20. 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 Dassault Aviation SA's dividend performance and assess its sustainability.
What Does Dassault Aviation SA Do?
Dassault Aviation, a subsidiary of French multinational company Dassault Group, designs, builds, and maintains military fighter jets, and is one of the largest manufacturers of business jets. Dassault has a 24.8% stake in narrow-moat Thales, which contributes significantly to Dassault's net profit. In 2021, Dassault Aviation generated EUR 7.2 billion in revenue with 12,000 employees. About 70% of revenue comes from defense aircraft equipment sales and services, while Falcon business jets generate the remaining 30% of sales.
A Glimpse at Dassault Aviation SA's Dividend History
Dassault Aviation SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis.
Breaking Down Dassault Aviation SA's Dividend Yield and Growth
As of today, Dassault Aviation SA currently has a 12-month trailing dividend yield of 1.48% and a 12-month forward dividend yield of 1.67%. This suggests an expectation of increased dividend payments over the next 12 months.
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, Dassault Aviation SA's dividend payout ratio is 0.35.
Dassault Aviation SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dassault Aviation SA's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each 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. Dassault Aviation SA's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Dassault Aviation SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dassault Aviation SA's revenue has increased by approximately -3.50% per year on average, a rate that underperforms approximately 77.58% 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, Dassault Aviation SA's earnings increased by approximately 30.10% per year on average, a rate that underperforms approximately 27.35% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.00%, which underperforms approximately 51.52% of global competitors.
Conclusion: Evaluating Dividend Sustainability
Considering Dassault Aviation SA's consistent dividend payments, growth in dividend yield, and a strong payout ratio, the company appears to be in a good position to maintain its dividend distributions. However, investors should also consider the company's moderate growth metrics and profitability in their long-term investment strategy. For those looking to explore further, 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.
