Insights into Upcoming Dividends and Financial Health
Helvetia Holding AG (HLVTY, Financial) recently announced a dividend of $0.17 per share, payable on 2024-06-14, with the ex-dividend date set for 2024-05-29. As investors anticipate this forthcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis explores Helvetia Holding AG's dividend performance and evaluates its sustainability.
What Does Helvetia Holding AG Do?
Helvetia Holding AG operates as a diversified insurance entity, covering life, nonlife, and other financial services. The life segment, which includes life insurance, pension plans, and annuities, is the primary revenue generator. Predominantly active in Switzerland, the company also has significant operations in Germany and Italy. Focusing on both retail customers and corporations, Helvetia considers strategic mergers and acquisitions crucial to its growth.
A Glimpse at Helvetia Holding AG's Dividend History
Since 2020, Helvetia Holding AG has maintained a reliable record of dividend payments, disbursed annually. Below is a visual representation of the annual Dividends Per Share, illustrating historical trends.
Breaking Down Helvetia Holding AG's Dividend Yield and Growth
Helvetia Holding AG boasts a 12-month trailing dividend yield of 4.74% and a forward dividend yield of 4.97%, indicating an expected increase in dividend payouts over the next year. Over the last three years, the annual dividend growth rate was 5.70%, which slightly dips to 4.80% over a five-year period. The decade-long growth rate stands at 5.80%, with a 5-year yield on cost for Helvetia Holding AG stock at approximately 5.99% today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio of Helvetia Holding AG is currently 1.12, which may raise concerns about the sustainability of future dividends. However, the company's profitability rank is 5 out of 10, indicating fair profitability, supported by a consistent record of positive net income over the past decade.
Growth Metrics: The Future Outlook
Helvetia Holding AG's growth rank of 5 suggests a moderate growth outlook. While the revenue per share and 3-year revenue growth rate indicate a robust revenue model, the 3-year EPS growth rate and 5-year EBITDA growth rate suggest challenges in earnings growth, which could impact long-term dividend sustainability.
Conclusion: Evaluating Helvetia Holding AG's Dividend Prospects
While Helvetia Holding AG shows a promising dividend yield and a history of consistent payments, the sustainability of these dividends hinges on improved profitability and growth metrics. Investors should monitor these factors closely to make informed decisions. For those seeking high-dividend yield opportunities, 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.
