Exploring the Sustainability and Growth of Autoliv Inc's Dividends
Autoliv Inc (ALV, Financial) has recently announced a dividend of $0.68 per share, scheduled for payment on June 12, 2024, with the ex-dividend date set for May 22, 2024. As investors eagerly anticipate this upcoming payment, it's essential to delve into the company's dividend history, yield, and growth rates. This analysis, using data from GuruFocus, will provide insights into Autoliv Inc's dividend performance and evaluate its sustainability.
What Does Autoliv Inc Do?
Autoliv Inc is a leading global provider of passive safety components and systems for the automotive industry. Their product range includes seat belts, frontal airbags, side-impact airbags, airbag inflators, and steering wheels. Among its largest customers in 2023 were the Renault-Nissan-Mitsubishi alliance, Stellantis, and Volkswagen, contributing 10%, 10%, and 9% to its revenue, respectively. Geographically, the Americas represented the largest market, accounting for 34% of 2023 revenue, followed by Europe at 27%, China at 20%, and the rest of the world at 19%.
A Glimpse at Autoliv Inc's Dividend History
Since 1997, Autoliv Inc has consistently paid dividends, with distributions occurring on a quarterly basis. Tracking the historical trends in dividends per share provides a clear view of the company's commitment to returning value to its shareholders.
Breaking Down Autoliv Inc's Dividend Yield and Growth
Currently, Autoliv Inc boasts a trailing dividend yield of 2.14% and a forward dividend yield of 2.17%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was an impressive 62.50%. However, this growth rate moderated to 4.70% annually over the past five years and showed a slight decline of 0.80% per year over the past decade. The 5-year yield on cost for Autoliv Inc stock is approximately 2.69% as of today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, which currently stands at 0.30, is crucial for assessing dividend sustainability. This ratio indicates that Autoliv Inc retains a substantial portion of its earnings, which supports future growth and financial flexibility. The company's profitability rank is 7 out of 10, reflecting robust earnings potential relative to its peers. Consistent positive net income over the past decade further underscores its strong profitability profile.
Growth Metrics: The Future Outlook
Autoliv Inc's growth rank of 7 suggests a promising growth trajectory compared to its competitors. The company's revenue per share and 3-year revenue growth rate of approximately 13.00% annually outperform about 58.72% of global competitors. Additionally, its 3-year EPS growth rate of approximately 37.50% annually outperforms about 71.46% of global competitors. Moreover, the 5-year EBITDA growth rate of 1.70% also indicates competitive performance.
Conclusion: Assessing Dividend Stability and Growth Prospects
Autoliv Inc's consistent dividend payments, backed by a solid payout ratio and robust profitability, suggest a reliable income stream for investors. The company's ability to grow revenue and earnings at competitive rates further supports the sustainability of its dividends. Investors seeking to identify high-dividend yielding stocks may find Autoliv Inc an attractive option, especially considering its performance and growth metrics. For more detailed analysis and stock screening, 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.
