Yahoo Finance Assa Abloy AB's Dividend Analysis
Understanding the Dividend Prospects and Stability of Assa Abloy AB
Assa Abloy AB (ASAZY) recently announced a dividend of $0.13 per share, payable on 2024-05-17, with the ex-dividend date set for 2024-04-25. 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 Assa Abloy AB's dividend performance and assess its sustainability.
What Does Assa Abloy AB Do?
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Assa Abloy is the world's largest supplier of locking and physical access solutions, sporting the world's largest installed base of locks that protect some of the most security-sensitive buildings, such as the European Parliament in Brussels. Three quarters of its revenue comes from government, commercial, and other nonresidential customers. The company's product base is centered on electromechanical locks, which require identification to unlock with a keycard, biometric scan, or personal identification number. Assa Abloy's products are sold directly to security systems integrators, locksmiths, hardware stores, and original equipment manufacturers.
A Glimpse at Assa Abloy AB's Dividend History
Assa Abloy AB has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Assa Abloy AB's Dividend Yield and Growth
As of today, Assa Abloy AB currently has a 12-month trailing dividend yield of 1.60% and a 12-month forward dividend yield of 1.69%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Assa Abloy AB's annual dividend growth rate was 7.60%. Extended to a five-year horizon, this rate decreased to 7.20% per year. And over the past decade, Assa Abloy AB's annual dividends per share growth rate stands at an impressive 10.50%.
Based on Assa Abloy AB's dividend yield and five-year growth rate, the 5-year yield on cost of Assa Abloy AB stock as of today is approximately 2.27%.
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, Assa Abloy AB's dividend payout ratio is 0.36.
Assa Abloy AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Assa Abloy AB's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. Assa Abloy AB's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Assa Abloy AB's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Assa Abloy AB's revenue has increased by approximately 17.10% per year on average, a rate that outperforms approximately 75.66% 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, Assa Abloy AB's earnings increased by approximately 21.50% per year on average, a rate that outperforms approximately 63.12% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.90%, which outperforms approximately 53.8% of global competitors.
Next Steps
In conclusion, Assa Abloy AB's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics paint a picture of a company that is not only committed to returning value to its shareholders but also positioned to sustain these returns. The consistent dividend history, coupled with a promising growth outlook, suggests that Assa Abloy AB could be a compelling choice for value investors focused on income-generating stocks. However, as with any investment, it's crucial to perform due diligence and consider the broader market conditions and individual investment goals. For those looking to find more high-dividend yield opportunities, 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.
This article first appeared on GuruFocus.
