Exploring the Dividend Performance and Sustainability of Chemical Works of Gedeon Richter PLC
Chemical Works of Gedeon Richter PLC (RGEDF, Financial) recently announced a dividend of $431.98 per share, payable on 2024-06-13, with the ex-dividend date set for 2024-06-05. 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 look into Chemical Works of Gedeon Richter PLC's dividend performance and assess its sustainability.
What Does Chemical Works of Gedeon Richter PLC Do?
Chemical Works of Gedeon Richter PLC is a pharmaceutical company. The company focuses on the development and manufacture of gynaecological, cardiovascular, and central nervous system products. It manufactures medicines including original, generic and licensed products for treatment in the therapeutic area. The group is active in two business segments namely, the Pharma segment comprising Women's Healthcare, Neuropsychiatry, Biotechnology, General Medicine, and Other pharma; and the Others segment includes the remaining wholesale and retail business of the Group and all other activities. The company operates internationally.
A Glimpse at Chemical Works of Gedeon Richter PLC's Dividend History
Chemical Works of Gedeon Richter PLC has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Chemical Works of Gedeon Richter PLC's Dividend Yield and Growth
As of today, Chemical Works of Gedeon Richter PLC currently has a 12-month trailing dividend yield of 4.51% and a 12-month forward dividend yield of 4.76%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Chemical Works of Gedeon Richter PLC's annual dividend growth rate was 83.60%. Extended to a five-year horizon, this rate decreased to 42.60% per year. And over the past decade, Chemical Works of Gedeon Richter PLC's annual dividends per share growth rate stands at an impressive 19.70%.
Based on Chemical Works of Gedeon Richter PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Chemical Works of Gedeon Richter PLC stock as of today is approximately 26.59%.
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, Chemical Works of Gedeon Richter PLC's dividend payout ratio is 0.25.
Chemical Works of Gedeon Richter PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Chemical Works of Gedeon Richter PLC'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. Chemical Works of Gedeon Richter PLC'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 Chemical Works of Gedeon Richter PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Chemical Works of Gedeon Richter PLC's revenue has increased by approximately 12.70% per year on average, a rate that outperforms approximately 69.26% 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, Chemical Works of Gedeon Richter PLC's earnings increased by approximately 12.30% per year on average, a rate that outperforms approximately 53.91% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 39.50%, which outperforms approximately 89.89% of global competitors.
Conclusion
Chemical Works of Gedeon Richter PLC's robust dividend payments, impressive growth rates, and strong payout ratio highlight its potential as a sustainable investment. The company's consistent profitability and growth metrics further support its ability to maintain and potentially increase its dividend payments in the future. Investors looking to benefit from dividends in the pharmaceutical sector might find Chemical Works of Gedeon Richter PLC an attractive option. 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.