Yahoo Finance Alstom SA's Dividend Analysis
Exploring the Sustainability and Growth of Alstom SA's Dividends
Alstom SA (ALSMY) recently announced a dividend of $0.11 per share, payable on 2024-06-24, 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 Alstom SA's dividend performance and assess its sustainability.
What Does Alstom SA Do?
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Alstom develops and markets systems, equipment, and services for the railway transport sector, including rolling stock, maintenance and modernization services, signaling, and infrastructure, which are offered separately, bundled, or as fully integrated solutions. The company is one of the key international players in the industry with a strong position in European markets.
A Glimpse at Alstom SA's Dividend History
Alstom SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Alstom SA's Dividend Yield and Growth
As of today, Alstom SA currently has a 12-month trailing dividend yield of 1.54% and a 12-month forward dividend yield of 1.54%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Alstom SA's dividend yield and five-year growth rate, the 5-year yield on cost of Alstom SA stock as of today is approximately 1.54%.
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, Alstom SA's dividend payout ratio is 0.74, which may suggest that the company's dividend may not be sustainable.
Alstom SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Alstom SA's profitability 5 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. Alstom SA's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Alstom SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Alstom SA's revenue has increased by approximately 11.20% per year on average, a rate that outperforms approximately 56.68% 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, Alstom SA's earnings increased by approximately -51.00% per year on average, a rate that outperforms approximately 4.13% of global competitors.
Conclusion
Considering Alstom SA's consistent dividend payments, growth prospects, and financial metrics, the company presents a compelling case for investors seeking dividend income. However, the sustainability of its dividends, given the payout ratio and profitability, requires careful monitoring. 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.
This article first appeared on GuruFocus.
