Yahoo Finance Ageas SA/ NV's Dividend Analysis
Exploring the Sustainability and Growth of Ageas SA/ NV's Dividends
Ageas SA/ NV (AGESY) recently announced a dividend of $1.88 per share, payable on June 14, 2024, with the ex-dividend date set for June 6, 2024. 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 Ageas SA/ NV's dividend performance and assess its sustainability.
What Does Ageas SA/ NV Do?
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Ageas SA/ NV was spun out of Fortis during the financial crisis, following a failed bid by a consortium including Banco Santander and Royal Bank of Scotland for ABN Amro. This takeover was poorly timed, leading Fortis to sell non-core divisions and write down collateralized debt. As capital dwindled and the market worsened, Fortis underwent leadership changes and customer withdrawals, eventually selling its domestic banking operations to the Belgium government and BNP Paribas, and spinning off its insurance and asset management divisions.
A Glimpse at Ageas SA/ NV's Dividend History
Ageas SA/ NV has maintained a consistent dividend payment record since 2010, distributing dividends bi-annually. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Ageas SA/ NV's Dividend Yield and Growth
Currently, Ageas SA/ NV boasts a trailing dividend yield of 6.49% and a forward dividend yield of 7.04%, indicating expected increases in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 4.20%, which rose to 11.30% over a five-year period, and 8.10% over the last decade. As of today, the 5-year yield on cost for Ageas SA/ NV stock is approximately 11.08%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, which currently stands at 0.61, provides insight into the portion of earnings distributed as dividends. A lower ratio suggests significant earnings retention, supporting future growth and stability. Ageas SA/ NV's profitability rank is 5 out of 10, indicating fair profitability with consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
Ageas SA/ NV's growth rank of 5 out of 10 suggests a fair growth outlook. Despite a 3-year revenue decline of 4.70% annually, underperforming 78.53% of global competitors, and a 3-year EPS decline rate of 7.30%, underperforming 75.06% of global competitors, the company's 5-year EBITDA growth rate of 1.80% also underperforms 64.09% of global competitors, indicating challenges in maintaining competitive growth rates.
Conclusion: Assessing Ageas SA/ NV's Dividend Viability
Considering Ageas SA/ NV's consistent dividend payments, growth in dividend rates, and a reasonable payout ratio, the dividends appear sustainable in the near term. However, the underlying growth metrics and market competitiveness pose challenges that could impact long-term sustainability. Investors should monitor these trends closely. For further analysis, GuruFocus Premium users can utilize the High Dividend Yield Screener to find promising dividend stocks.
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.
This article first appeared on GuruFocus.
