Yahoo Finance BNP Paribas's Dividend Analysis
An In-depth Look at BNP Paribas's Upcoming Dividend and Financial Health
BNP Paribas (BNPQY) recently announced a dividend of $2.49 per share, payable on 2024-06-24, with the ex-dividend date set for 2024-05-17. 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 BNP Paribas's dividend performance and assess its sustainability.
What Does BNP Paribas Do?
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The merger of Banque Nationale de Paris and Paribas in 2000 birthed BNP Paribas, now the largest publicly traded bank in France. With operations spanning approximately 80 countries, BNP Paribas prioritizes France, Italy, and Belgium as its core markets.
A Glimpse at BNP Paribas's Dividend History
Since 2021, BNP Paribas has upheld a reliable dividend payment schedule, distributing dividends annually. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down BNP Paribas's Dividend Yield and Growth
Currently, BNP Paribas boasts a 12-month trailing dividend yield of 5.42% and a 12-month forward dividend yield of 6.41%, indicating an anticipated increase in dividend payments over the next year. The 5-year yield on cost for BNP Paribas stock stands at approximately 5.42%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of BNP Paribas's dividends, it's crucial to consider the dividend payout ratio. As of 2024-03-31, the ratio stands at 0.54, suggesting a balanced approach between distributing earnings and retaining funds for future growth and stability. BNP Paribas's profitability rank is currently 6 out of 10, indicating fair profitability, supported by a decade of consistent positive net income.
Growth Metrics: The Future Outlook
BNP Paribas's future dividend sustainability is also dependent on its growth metrics. With a growth rank of 6 out of 10, the outlook appears stable. The bank's revenue per share and 3-year revenue growth rate have shown an average annual increase of 5.90%, albeit slightly underperforming against global competitors. Its 3-year EPS growth rate and 5-year EBITDA growth rate also reflect a competitive stance in earnings growth, vital for long-term dividend sustainability.
Conclusion: Evaluating BNP Paribas's Dividend Prospects
Considering BNP Paribas's consistent dividend payments, growth in dividend yield, and a prudent payout ratio, the bank appears well-positioned to maintain its dividend distributions. Investors should also consider the bank's solid profitability metrics and growth prospects when evaluating its stock for investment. For those interested in exploring further, GuruFocus Premium offers tools like the High Dividend Yield Screener to discover more high-yield opportunities.
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.
