An In-depth Analysis of the Dividend Performance and Sustainability of Bank of Georgia Group PLC (BDGSF, Financial)
Bank of Georgia Group PLC (BDGSF) recently announced a dividend of $3.06 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-05. 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 deep dive into Bank of Georgia Group PLC's dividend performance and assess its sustainability.
Understanding Bank of Georgia Group PLC's Business
Bank of Georgia Group PLC offers banking services. The company through its banking divisions involves in various business which includes retail banking and payment services, corporate investment banking and wealth management operations, and banking operations in Belarus which forms the core entity of the group's banking business. The Bank has operating outlets in all cities of Georgia.
Exploring Bank of Georgia Group PLC's Dividend History
Bank of Georgia Group PLC has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Decoding Bank of Georgia Group PLC's Dividend Yield and Growth
As of today, Bank of Georgia Group PLC currently has a 12-month trailing dividend yield of 6.88% and a 12-month forward dividend yield of 8.06%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bank of Georgia Group PLC's annual dividend growth rate was 17.80%. Based on Bank of Georgia Group PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Bank of Georgia Group PLC stock as of today is approximately 6.88%.
Assessing Dividend Sustainability: 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 2023-06-30, Bank of Georgia Group PLC's dividend payout ratio is 0.22.
Bank of Georgia Group PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bank of Georgia Group PLC's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Bank of Georgia Group PLC's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Bank of Georgia Group PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bank of Georgia Group PLC's revenue has increased by approximately 22.20% per year on average, a rate that outperforms than approximately 92.13% 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, Bank of Georgia Group PLC's earnings increased by approximately 42.80% per year on average, a rate that outperforms than approximately 92.4% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.40%, which outperforms than approximately 84.84% of global competitors.
Concluding Remarks
After a comprehensive analysis of Bank of Georgia Group PLC's dividend payments, growth rate, payout ratio, profitability, and growth metrics, it is apparent that the company has a strong dividend performance. Its consistent dividend payments, substantial growth rates, and robust profitability make it an attractive option for investors seeking sustainable dividend income. However, as with any investment, investors should conduct their due diligence and consider their risk tolerance before investing.
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