Yahoo Finance Deutsche Boerse AG's Dividend Analysis
Exploring the Sustainability and Growth of Deutsche Boerse AG's Dividends
Deutsche Boerse AG (DBOEY) recently announced a dividend of $0.4 per share, payable on 2024-06-03, with the ex-dividend date set for 2024-05-15. 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 Deutsche Boerse AG's dividend performance and assess its sustainability.
What Does Deutsche Boerse AG Do?
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Deutsche Boerse is a financial exchange company headquartered in Frankfurt, Germany. The company primarily generates revenue through its Eurex and Clearstream segments. Eurex allows for the trading and clearing of derivatives. Clearstream offers custody and settlement services for domestic and international securities, as well as collateral management services. Other segments include Xetra, which generates revenue through trading and clearing cash equities, STOXX (an index business), and several others.
A Glimpse at Deutsche Boerse AG's Dividend History
Deutsche Boerse AG 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 Deutsche Boerse AG's Dividend Yield and Growth
As of today, Deutsche Boerse AG currently has a 12-month trailing dividend yield of 1.96% and a 12-month forward dividend yield of 2.04%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Deutsche Boerse AG's annual dividend growth rate was 7.50%. Extended to a five-year horizon, this rate decreased to 7.30% per year. Over the past decade, Deutsche Boerse AG's annual dividends per share growth rate stands at 5.70%.
Based on Deutsche Boerse AG's dividend yield and five-year growth rate, the 5-year yield on cost of Deutsche Boerse AG stock as of today is approximately 2.79%.
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, Deutsche Boerse AG's dividend payout ratio is 0.38.
Deutsche Boerse AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Deutsche Boerse AG's profitability 8 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. Deutsche Boerse AG's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Deutsche Boerse AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Deutsche Boerse AG's revenue has increased by approximately 17.70% per year on average, a rate that outperforms approximately 72.98% 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, Deutsche Boerse AG's earnings increased by approximately 16.70% per year on average, a rate that outperforms approximately 62.61% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.30%, which outperforms approximately 59.33% of global competitors.
Conclusion
With a solid track record of dividend payments, a healthy payout ratio, and robust profitability and growth metrics, Deutsche Boerse AG presents a compelling case for investors seeking sustainable income. The company's strategic positioning within financial services, coupled with its consistent financial performance, supports the likelihood of continued dividend growth. For those looking to expand their investment horizon, Deutsche Boerse AG warrants consideration as a potentially valuable addition to a dividend-focused portfolio.
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.
