Insight into Upcoming Dividend and Historical Performance
D'Ieteren Group (SIETY, Financial) recently announced a dividend of $2.04 per share, payable on 2024-06-28, with the ex-dividend date set for 2024-06-17. 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 D'Ieteren Group's dividend performance and assess its sustainability.
What Does D'Ieteren Group Do?
D'Ieteren Group imports and distributes vehicles belonging to the Volkswagen brand pool (D'Ieteren Auto) and provides car glass repair and replacement solutions (Belron). D'Ieteren Auto also sells used vehicles, provides spare parts and accessories, offers car financing and long-term rental services, and distributes motorcycle and scooter products. D'Ieteren Auto's operations are focused in Belgium. Belron provides car glass repair solutions under different brands, including Carglass, Safelite AutoGlass, and Autoglass in Europe. Customers of The D'Ieteren group generate approximately half its revenue from D'Ieteren Auto and the other half from Belron.
A Glimpse at D'Ieteren Group's Dividend History
D'Ieteren Group has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down D'Ieteren Group's Dividend Yield and Growth
As of today, D'Ieteren Group currently has a 12-month trailing dividend yield of 1.51% and a 12-month forward dividend yield of 1.91%. This suggests an expectation of increase dividend payments over the next 12 months. Over the past three years, D'Ieteren Group's annual dividend growth rate was 44.20%. Extended to a five-year horizon, this rate decreased to 26.70% per year. And over the past decade, D'Ieteren Group's annual dividends per share growth rate stands at an impressive 11.80%.
Based on D'Ieteren Group's dividend yield and five-year growth rate, the 5-year yield on cost of D'Ieteren Group stock as of today is approximately 4.93%.
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, D'Ieteren Group's dividend payout ratio is 0.22.
D'Ieteren Group's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks D'Ieteren Group's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. D'Ieteren Group's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and D'Ieteren Group's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. D'Ieteren Group's revenue has increased by approximately 34.50% per year on average, a rate that outperforms than approximately 90.84% 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, D'Ieteren Group's earnings increased by approximately 48.00% per year on average, a rate that outperforms than approximately 79.83% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 34.50%, which outperforms than approximately 87.05% of global competitors.
Conclusion
Considering D'Ieteren Group's consistent dividend payments, robust dividend growth rate, prudent payout ratio, strong profitability, and solid growth metrics, the company stands as a compelling candidate for value investors seeking reliable dividend income. As we continue to monitor these trends, investors might ponder: How will D'Ieteren Group leverage its strengths to enhance shareholder value in the coming years?
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.
