Yahoo Finance Legrand SA's Dividend Analysis
An In-depth Look at the Upcoming Dividend and Historical Performance
Legrand SA (LGRDY) recently announced a dividend of $0.45 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-05-30. 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 Legrand SA's dividend performance and assess its sustainability.
What Does Legrand SA Do?
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Legrand is a global manufacturer of low-voltage electrical components, which are mostly used in residential (40%) and nonresidential (40%) buildings. Its products include wiring devices, cable management, lighting, and audio visual equipment, sold under approximately 80 brands across 180 countries. Its products are sold primarily through specialist distributors that subsequently sell to installers/electricians. Legrand is a major supplier to global electrical equipment distributors, including Rexel and Sonepar. North America and Europe each account for 40% of group sales.
A Glimpse at Legrand SA's Dividend History
Legrand SA has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a yearly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Legrand SA's Dividend Yield and Growth
As of today, Legrand SA currently has a 12-month trailing dividend yield of 1.80% and a 12-month forward dividend yield of 2.00%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Legrand SA's annual dividend growth rate was 12.30%. Extended to a five-year horizon, this rate decreased to 8.10% per year. And over the past decade, Legrand SA's annual dividends per share growth rate stands at 7.60%.
Based on Legrand SA's dividend yield and five-year growth rate, the 5-year yield on cost of Legrand SA stock as of today is approximately 2.66%.
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, Legrand SA's dividend payout ratio is 0.46.
Legrand SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Legrand SA's profitability 9 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Legrand SA'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 Legrand SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Legrand SA's revenue has increased by approximately 11.60% per year on average, a rate that outperforms approximately 60.93% 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, Legrand SA's earnings increased by approximately 21.20% per year on average, a rate that outperforms approximately 62.38% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.50%, which outperforms approximately 55.57% of global competitors.
Next Steps
Considering Legrand SA's consistent dividend payments, robust dividend growth rate, sustainable payout ratio, high profitability, and strong growth metrics, the company presents a compelling case for dividend investors. With its solid financial health and strategic market position, Legrand SA appears well-equipped to maintain its dividend payments and possibly increase them in the future. For those interested in exploring further, 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.
