Yahoo Finance Getinge AB's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of Getinge AB
Getinge AB (GNGBY) recently announced a dividend of $0.42 per share, payable on 2024-05-14, with the ex-dividend date set for 2024-04-23. 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 Getinge AB's dividend performance and assess its sustainability.
What Does Getinge AB Do?
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Getinge AB, headquartered in Gothenburg, Sweden, manufactures a wide range of products for use in acute care, surgical, and life sciences in the hospital, pharmaceutical, and research settings. The company reports in three segments: acute care therapies (52% of revenue), surgical workflows (34%), and life sciences (14%). Product areas include ventilators, surgical stents, life support systems, sterilizers, surgical tables, and sterile transfer systems. Getinge derives revenue from a broad geographic footprint, with the Americas accounting for 45% of sales (U.S. 33% of sales), Asia-Pacific 25%, and Europe, Middle East, and Africa the remaining 30%.
A Glimpse at Getinge AB's Dividend History
Getinge AB has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Getinge AB's Dividend Yield and Growth
As of today, Getinge AB currently has a 12-month trailing dividend yield of 2.13% and a 12-month forward dividend yield of 2.14%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Getinge AB's annual dividend growth rate was 41.50%. Extended to a five-year horizon, this rate decreased to 33.30% per year. And over the past decade, Getinge AB's annual dividends per share growth rate stands at -0.80%. Based on Getinge AB's dividend yield and five-year growth rate, the 5-year yield on cost of Getinge AB stock as of today is approximately 8.96%.
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, Getinge AB's dividend payout ratio is 0.44. Getinge AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Getinge AB'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 the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Getinge AB'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 Getinge AB's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Getinge AB's revenue has increased by approximately 2.20% per year on average, a rate that underperforms approximately 65.09% 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, Getinge AB's earnings increased by approximately -8.50% per year on average, a rate that underperforms approximately 71.41% of global competitors.
Next Steps for Investors Considering Getinge AB
In conclusion, while Getinge AB's dividend payments and yield are attractive, investors should closely monitor the company's payout ratio, profitability, and growth metrics. The dividend growth rate indicates a positive trend, but the sustainability of such growth will depend on the company's future performance and earnings capability. Investors seeking to add dividend-paying stocks to their portfolios may find Getinge AB a compelling option, provided they conduct thorough due diligence on the company's financial health and market position. 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.
