An In-depth Look at Upcoming Dividends and Historical Performance
Erste Group Bank AG. (EBKDY, Financial) recently announced a dividend of $1.47 per share, payable on 2024-06-10, with the ex-dividend date set for 2024-05-24. 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 Erste Group Bank AG.'s dividend performance and assess its sustainability.
What Does Erste Group Bank AG. Do?
Erste Group Bank AG. is a financial services provider. The banking operations of the company are retail and corporate customer business in the eastern part of the European Union, including Austria. The geographical areas consist of two core markets, Austria and Central and Eastern Europe and a residual segment Other comprises the remaining business activities of the bank outside its core markets as well as the reconciliation to the consolidated accounting result. The company's operating segments include Retail, corporations, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, and Group Corporate Center.
A Glimpse at Erste Group Bank AG.'s Dividend History
Erste Group Bank AG. 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 Erste Group Bank AG.'s Dividend Yield and Growth
As of today, Erste Group Bank AG. currently has a 12-month trailing dividend yield of 4.00% and a 12-month forward dividend yield of 5.72%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Erste Group Bank AG.'s dividend yield and five-year growth rate, the 5-year yield on cost of Erste Group Bank AG. stock as of today is approximately 4.00%.
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, Erste Group Bank AG.'s dividend payout ratio is 0.25. Erste Group Bank AG.'s profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Erste Group Bank AG.'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 past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Erste Group Bank AG.'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 Erste Group Bank AG.'s revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Erste Group Bank AG.'s revenue has increased by approximately 12.90% per year on average, a rate that outperforms approximately 70.79% 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, Erste Group Bank AG.'s earnings increased by approximately 60.60% per year on average, a rate that outperforms approximately 92.25% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 12.60%, which outperforms approximately 66.61% of global competitors.
Next Steps
With its robust dividend yield, consistent payout history, and strong growth metrics, Erste Group Bank AG. remains an attractive option for investors seeking steady income with potential for capital appreciation. As the company continues to navigate the complexities of the financial sector, its strategic initiatives and market position will play critical roles in sustaining its dividend payments. Investors should keep a close eye on Erste Group Bank AG.'s future earnings announcements and any strategic changes that might affect its dividend policies. 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.
