Insights into the Upcoming Dividend and Historical Performance
Dr. Ing. h.c. F. Porsche AG (DRPRY, Financial) recently announced a dividend of $0.2 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-06-11. 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 Dr. Ing. h.c. F. Porsche AG's dividend performance and assess its sustainability.
What Does Dr. Ing. h.c. F. Porsche AG Do?
Porsche engineers and manufactures premium and luxury sports cars and sports crossovers. The Porsche brand is synonymous with motorsports, German engineering, and fast, fun to drive, sports cars. The firm also has a captive finance company that provides funding for dealers and customers. In 2023, there were over 320,000 Porsche vehicles delivered to customers with about 25% going to China, 32% to Europe, 27% to North America, and 16% to rest of world.
A Glimpse at Dr. Ing. h.c. F. Porsche AG's Dividend History
Dr. Ing. h.c. F. Porsche AG has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. Dr. Ing. h.c. F. Porsche AG has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2024 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Dr. Ing. h.c. F. Porsche AG's Dividend Yield and Growth
As of today, Dr. Ing. h.c. F. Porsche AG currently has a 12-month trailing dividend yield of 1.36% and a 12-month forward dividend yield of 2.52%. This suggests an expectation of increased dividend payments over the next 12 months. Dr. Ing. h.c. F. Porsche AG's dividend yield of 1.36% is near a 10-year high and outperforms 28.97% of global competitors in the Vehicles & Parts industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Dr. Ing. h.c. F. Porsche AG's dividend yield and five-year growth rate, the 5-year yield on cost of Dr. Ing. h.c. F. Porsche AG stock as of today is approximately 1.36%.
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 2024-03-31, Dr. Ing. h.c. F. Porsche AG's dividend payout ratio is 0.20. Dr. Ing. h.c. F. Porsche AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dr. Ing. h.c. F. Porsche AG's profitability 6 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported net profit in 6 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Dr. Ing. h.c. F. Porsche AG'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 Dr. Ing. h.c. F. Porsche AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dr. Ing. h.c. F. Porsche AG's revenue has increased by approximately 12.20% per year on average, a rate that outperforms approximately 54.21% 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, Dr. Ing. h.c. F. Porsche AG's earnings increased by approximately 16.90% per year on average, a rate that outperforms approximately 50.05% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 11.60%, which outperforms approximately 56.46% of global competitors.
Conclusion
Dr. Ing. h.c. F. Porsche AG demonstrates a promising outlook with its consistent dividend payments, robust growth metrics, and strategic financial management. The company's commitment to maintaining a healthy payout ratio while continuing to grow its earnings suggests a sustainable dividend policy that could attract and reassure investors. As the automotive industry evolves, Dr. Ing. h.c. F. Porsche AG appears well-positioned to continue rewarding its shareholders. For those interested in exploring further, 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.
