Exploring the Dividend Performance and Sustainability of Societe Generale SA
Societe Generale SA (SCGLY, Financial) recently announced a dividend of $0.19 per share, payable on 2024-06-13, with the ex-dividend date set for 2024-05-23. 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 Societe Generale SA's dividend performance and assess its sustainability.
What Does Societe Generale SA Do?
Founded in 1884, Societe Generale is one of France's major banks. It was historically viewed as primarily a corporate and investment bank, but it has meaningful retail banking operations in France, Eastern Europe, and North Africa.
A Glimpse at Societe Generale SA's Dividend History
Societe Generale SA 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 Societe Generale SA's Dividend Yield and Growth
As of today, Societe Generale SA currently has a 12-month trailing dividend yield of 6.00% and a 12-month forward dividend yield of 3.22%. This suggests an expectation of decreased dividend payments over the next 12 months.
Based on Societe Generale SA's dividend yield and five-year growth rate, the 5-year yield on cost of Societe Generale SA stock as of today is approximately 6.00%.
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 2024-03-31, Societe Generale SA's dividend payout ratio is 0.49.
Societe Generale SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Societe Generale SA's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. 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. Societe Generale 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 Societe Generale SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Societe Generale SA's revenue has increased by approximately 13.80% per year on average, a rate that outperforms approximately 73.2% of global competitors.
Conclusion
Considering Societe Generale SA's consistent dividend payments, moderate growth rate, and sound payout ratio, the company's dividends appear sustainable in the near term. However, investors should continue to monitor growth and profitability metrics closely to gauge long-term sustainability. 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.
