Assessing the Upcoming Dividend and Company Fundamentals
SIG Group AG (SCBGF, Financial) recently announced a dividend of $0.48 per share, payable on 2024-04-30, with the ex-dividend date set for 2024-04-26. 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 SIG Group AG's dividend performance and assess its sustainability.
What Does SIG Group AG Do?
SIG Group AG is a systems and solutions provider for aseptic carton packaging, offering filling machines, sleeves, closures, and after-market services. The company primarily operates in Europe, the Middle East and Africa (MEA), Asia Pacific (APAC), and the Americas, with the majority of its revenue generated from the European market. SIG Group AG caters to the beverage and food industry, providing innovative packaging solutions.
A Glimpse at SIG Group AG's Dividend History
SIG Group AG has upheld a consistent dividend payment track record since 2021, with distributions occurring annually. Below is a chart illustrating the annual Dividends Per Share to visualize historical trends.
Breaking Down SIG Group AG's Dividend Yield and Growth
SIG Group AG's current 12-month trailing dividend yield stands at 2.66%, and its 12-month forward dividend yield is 2.69%, indicating an anticipated increase in dividend payments over the next year. The company's dividend yield is near a 10-year high and surpasses 51.18% of global competitors in the Packaging & Containers industry, marking it as an attractive option for income investors.
Over the past three years, SIG Group AG's annual dividend growth rate was 4.60%. Consequently, the 5-year yield on cost for SIG Group AG stock is approximately 2.66% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of SIG Group AG's dividends can be gauged by examining its dividend payout ratio, which stands at 0.56 as of 2023-12-31. This ratio indicates that the company retains a substantial portion of its earnings, which supports future growth and buffers against economic downturns. Additionally, SIG Group AG's profitability rank is 5 out of 10, reflecting fair profitability with net profits recorded in 5 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividend sustainability, robust growth metrics are essential. SIG Group AG's growth rank of 5 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 9.10%, outperforming 61.89% of global competitors.
SIG Group AG's 3-year EPS growth rate shows a slight average annual decrease of -0.30%, yet it still outperforms 39.01% of global peers. Furthermore, the company's 5-year EBITDA growth rate of 2.20% outperforms 38.01% of global competitors, demonstrating its potential for sustained earnings before interest, taxes, depreciation, and amortization.
Next Steps
In conclusion, SIG Group AG's dividend payments, growth rate, and payout ratio, combined with its fair profitability and growth metrics, present a compelling case for investors seeking income through dividends. As the company continues to navigate the dynamic packaging and containers industry, its financial health will be critical for maintaining and potentially increasing its dividends. Investors should keep an eye on SIG Group AG's performance and industry trends to make informed decisions. For those interested in exploring more high-dividend yield stocks, GuruFocus Premium offers a comprehensive 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.
