Exploring the Sustainability and Growth of Aalberts NV's Dividends
Overview of Aalberts NV's Upcoming Dividend
Aalberts NV (AALBF, Financial) recently announced a dividend of $1.13 per share, set to be paid on June 20, 2024, with the ex-dividend date on May 28, 2024. As investors anticipate this forthcoming payment, it is crucial to delve into the company's dividend history, yield, and growth rates. This analysis uses comprehensive data from GuruFocus to evaluate the performance and sustainability of Aalberts NV's dividends.
What Does Aalberts NV Do?
Aalberts NV specializes in developing technologies and projects that enhance efficiencies in buildings and products. The company operates primarily through two segments: Building Technology and Industrial Technology. The Building Technology segment, which generates the majority of the company's revenue, focuses on systems that control hydronic flow in heating and cooling systems to improve energy efficiency. It also designs and manufactures integrated piping systems for distributing and regulating water or gas in various systems. Aalberts NV primarily serves the European market.
A Glimpse at Aalberts NV's Dividend History
Since 2013, Aalberts NV has maintained a consistent record of dividend payments, distributed annually. The historical trend of the company's dividends per share is illustrated in the chart below.
Breaking Down Aalberts NV's Dividend Yield and Growth
Currently, Aalberts NV boasts a trailing twelve-month dividend yield of 2.66% and a forward dividend yield of 2.69%, indicating anticipated growth in dividend payments over the next year. Over the last three years, the company's annual dividend growth rate was 11.50%, which slightly decreased to 9.80% over a five-year period. However, over the past decade, the annual growth rate of dividends per share has been an impressive 10.80%. The 5-year yield on cost for Aalberts NV stock is approximately 4.25% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Aalberts NV's dividends can be gauged by examining its dividend payout ratio, which currently stands at 0.39. This indicates that the company retains a significant portion of its earnings for future growth and to buffer against potential downturns. The company's profitability rank is 8 out of 10, reflecting strong earnings capabilities relative to its peers. Aalberts NV has consistently reported positive net income each year over the past decade, further solidifying its robust profitability.
Growth Metrics: The Future Outlook
The future sustainability of dividends also depends on a company's growth metrics. Aalberts NV's growth rank of 8 out of 10 indicates a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate of 8.40% per year demonstrate a strong revenue model, though it slightly underperforms compared to 50.18% of global competitors. The 3-year EPS growth rate of 13.30% per year and the 5-year EBITDA growth rate of 5.20% further underscore the company's ability to sustain its dividends.
Conclusion
In conclusion, Aalberts NV's consistent dividend payments, supported by a solid dividend growth rate, low payout ratio, and strong profitability and growth metrics, suggest a promising outlook for current and potential investors. Those interested in further exploring high-dividend yield opportunities may consider using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
