Yahoo Finance Essilorluxottica's Dividend Analysis
Exploring the Sustainability and Growth of Essilorluxottica's Dividends
Essilorluxottica (ESLOY) recently announced a dividend of $2.11 per share, payable on 2024-06-18, with the ex-dividend date set for 2024-05-03. 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 Essilorluxottica's dividend performance and assess its sustainability.
What Does Essilorluxottica Do?
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EssilorLuxottica is a combination of the leading manufacturer of premium frames and sunglasses and the leading manufacturer of optical lenses. Both companies are significantly larger than the next biggest player in their respective fields and command over 15% of the fragmented global eyewear market. The company has a broad geographical presence, with around 36% of sales in Europe, 47% in North America, and the rest in Asia and Latin America.
A Glimpse at Essilorluxottica's Dividend History
Essilorluxottica has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a yearly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Essilorluxottica's Dividend Yield and Growth
As of today, Essilorluxottica currently has a 12-month trailing dividend yield of 1.62% and a 12-month forward dividend yield of 1.93%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Essilorluxottica's annual dividend growth rate was 41.10%. Extended to a five-year horizon, this rate decreased to 13.10% per year. And over the past decade, Essilorluxottica's annual dividends per share growth rate stands at an impressive 10.50%.
Based on Essilorluxottica's dividend yield and five-year growth rate, the 5-year yield on cost of Essilorluxottica stock as of today is approximately 3.00%.
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, Essilorluxottica's dividend payout ratio is 0.64.
Essilorluxottica's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Essilorluxottica'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. Essilorluxottica'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 Essilorluxottica's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Essilorluxottica's revenue has increased by approximately 19.70% per year on average, a rate that outperforms approximately 76.68% 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, Essilorluxottica's earnings increased by approximately 194.00% per year on average, a rate that outperforms approximately 99.29% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 18.70%, which outperforms approximately 65.82% of global competitors.
Conclusion: A Robust Dividend Profile
With a solid track record of dividend payments, impressive growth in dividends per share, and robust financial health indicators, Essilorluxottica presents a compelling case for dividend investors. The company's ability to sustain and grow its dividends is supported by its strong profitability, strategic market position, and consistent revenue growth. For investors seeking dividend growth and stability, Essilorluxottica stands out as a promising candidate. GuruFocus Premium users can explore further 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.
