Exploring the Sustainability and Growth of Dividends at BDO Unibank Inc
BDO Unibank Inc (BDOUY, Financial) has recently declared a dividend of $0.17 per share, scheduled for payment on July 5, 2024, with the ex-dividend date on June 11, 2024. This announcement has drawn attention to the bank's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this article delves into the performance and sustainability of BDO Unibank Inc's dividends.
What Does BDO Unibank Inc Do?
BDO Unibank Inc is a comprehensive universal bank based in the Philippines, offering a wide array of banking services. These include corporate and consumer lending, deposit-taking, foreign exchange, and brokering, along with trust and investments, credit cards, and corporate cash management. The bank also provides leasing and financing, investment banking, private banking, rural banking, bancassurance, insurance, and stock brokerage services through its extensive network of branches and ATMs. A significant portion of its earnings assets are attributed to loans and other receivables.
A Glimpse at BDO Unibank Inc's Dividend History
Since 2015, BDO Unibank Inc has consistently distributed dividends, currently on a quarterly basis. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down BDO Unibank Inc's Dividend Yield and Growth
BDO Unibank Inc currently boasts a 12-month trailing dividend yield of 2.33% and a forward dividend yield of 3.02%, indicating anticipated increases in dividend payments over the next year. Over the last three years, the annual dividend growth rate was an impressive 44.20%, though it moderated to 17.50% over the past five years, and further to 3.40% over the last decade. As of today, the 5-year yield on cost for BDO Unibank Inc's stock is approximately 5.22%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of its dividends, it's crucial to look at BDO Unibank Inc's dividend payout ratio, which currently stands at 0.21. This low payout ratio indicates that the bank retains a substantial portion of its earnings, which supports future growth and provides a buffer against potential downturns. Furthermore, BDO Unibank Inc's profitability rank is 7 out of 10, reflecting strong profitability relative to its peers and consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
BDO Unibank Inc's growth rank of 7 out of 10 suggests a favorable growth trajectory compared to its competitors. The bank's revenue per share and 3-year revenue growth rate show a robust revenue model, with an average annual increase of 10.80%, outperforming 64.22% of global competitors. Additionally, its 3-year EPS growth rate of 36.80% and 5-year EBITDA growth rate of 15.90% further highlight its capability to sustain dividend payments through strong earnings growth.
Conclusion: Assessing BDO Unibank Inc's Dividend Viability
The analysis of BDO Unibank Inc's dividend payments, growth rates, payout ratio, and profitability metrics paints a picture of a financially healthy institution capable of sustaining and potentially increasing its dividend distributions. With a solid track record and promising growth indicators, BDO Unibank Inc appears well-positioned for future success. Investors seeking high-dividend yield opportunities may consider further exploring this stock using tools like 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.
