Exploring the Sustainability and Growth of Dividends at Booz Allen Hamilton Holding Corp
Booz Allen Hamilton Holding Corp (BAH, Financial) recently announced a dividend of $0.51 per share, payable on 2024-06-28, with the ex-dividend date set for 2024-06-13. 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 delve into Booz Allen Hamilton Holding Corp's dividend performance and assess its sustainability.
What Does Booz Allen Hamilton Holding Corp Do?
Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government. Other services offered include technology, such as cloud computing and cybersecurity consulting, and engineering consulting. The consulting services are focused on defense, intelligence, and civil markets. In addition to the U.S. government, Booz Allen Hamilton provides its management and technology consulting services to large corporations, institutions, and nonprofit organizations. The company assists clients in long-term engagements around the globe.
A Glimpse at Booz Allen Hamilton Holding Corp's Dividend History
Booz Allen Hamilton Holding Corp has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a quarterly basis. Furthermore, the company has increased its dividend each year since 2012, earning it the status of a dividend achiever, a designation for companies that have increased their dividends annually for at least the past 12 years.
Breaking Down Booz Allen Hamilton Holding Corp's Dividend Yield and Growth
As of today, Booz Allen Hamilton Holding Corp currently has a 12-month trailing dividend yield of 1.27% and a 12-month forward dividend yield of 1.35%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Booz Allen Hamilton Holding Corp's annual dividend growth rate was 13.90%, which extends to a five-year horizon of 19.10% per year. Over the past decade, the annual dividends per share growth rate stands at an impressive 18.00%.
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. As of 2024-03-31, Booz Allen Hamilton Holding Corp's dividend payout ratio is 0.35. Booz Allen Hamilton Holding Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Booz Allen Hamilton Holding Corp's profitability 9 out of 10 as of 2024-03-31, 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. Booz Allen Hamilton Holding Corp's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Booz Allen Hamilton Holding Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Booz Allen Hamilton Holding Corp's revenue has increased by approximately 12.90% per year on average, a rate that outperforms approximately 65.54% 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, Booz Allen Hamilton Holding Corp's earnings increased by approximately 12.10% per year on average, a rate that outperforms approximately 48.45% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 14.10%, which outperforms approximately 61.36% of global competitors.
Booz Allen Hamilton Holding Corp's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and strong profitability and growth metrics paint a promising picture for current and potential investors. These factors indicate a sustainable dividend policy that could appeal to those seeking steady income in addition to capital appreciation. 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.
