Yahoo Finance Capgemini SE's Dividend Analysis
Exploring the Sustainability and Growth of Capgemini SE's Dividends
Capgemini SE (CGEMY) recently announced a dividend of $0.73 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-05-28. 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 Capgemini SE's dividend performance and assess its sustainability.
What Does Capgemini SE Do?
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Capgemini is a French IT services company with a global presence. The firm has over 450 offices globally, with more than half of its employees based in India. Capgemini provides services related to IT consulting, software application and technology services, infrastructure management, engineering research and development, and business process outsourcing.
A Glimpse at Capgemini SE's Dividend History
Capgemini SE has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Capgemini SE's Dividend Yield and Growth
As of today, Capgemini SE currently has a 12-month trailing dividend yield of 1.52% and a 12-month forward dividend yield of 1.60%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Capgemini SE's annual dividend growth rate was 34.00%. Extended to a five-year horizon, this rate decreased to 14.20% per year. And over the past decade, Capgemini SE's annual dividends per share growth rate stands at an impressive 10.10%.
Based on Capgemini SE's dividend yield and five-year growth rate, the 5-year yield on cost of Capgemini SE stock as of today is approximately 2.95%.
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, Capgemini SE's dividend payout ratio is 0.31.
Capgemini SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Capgemini SE's profitability 9 out of 10 as of 2023-12-31, 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. Capgemini SE'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 Capgemini SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Capgemini SE's revenue has increased by approximately 11.40% per year on average, a rate that outperforms approximately 56.63% 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, Capgemini SE's earnings increased by approximately 16.30% per year on average, a rate that outperforms approximately 58.67% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 17.10%, which outperforms approximately 61.93% of global competitors.
Next Steps
With a robust dividend history, a promising growth outlook, and strong profitability metrics, Capgemini SE presents an appealing case for dividend investors. The company's strategic positioning within the IT services industry, combined with its consistent financial performance, underscores its capacity to maintain and potentially increase its dividend payouts. Investors seeking to diversify their portfolios with stable dividend-paying stocks should consider Capgemini SE as a viable option. 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.
