Yahoo Finance Heidelberg Materials AG's Dividend Analysis
Exploring the Sustainability and Growth of Heidelberg Materials AG's Dividends
Heidelberg Materials AG (HDELY) recently announced a dividend of $0.64 per share, payable on 2024-06-06, with the ex-dividend date set for 2024-05-17. 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 Heidelberg Materials AG's dividend performance and assess its sustainability.
What Does Heidelberg Materials AG Do?
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Heidelberg Materials is one of the world's largest building materials companies, with operations in 60 countries. Its core activities include the production of cement and aggregates, which are used to construct houses, infrastructure, and commercial facilities. The sale of cement and aggregates accounts for the majority of group revenue and profits. North America is the company's largest market, contributing 29% of EBITDA, followed by Western and Southern Europe, contributing 21%. Heidelberg Materials is listed in Germany and has 55,000 employees.
A Glimpse at Heidelberg Materials AG's Dividend History
Heidelberg Materials AG has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Heidelberg Materials AG's Dividend Yield and Growth
As of today, Heidelberg Materials AG currently has a 12-month trailing dividend yield of 2.58% and a 12-month forward dividend yield of 2.94%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Heidelberg Materials AG's annual dividend growth rate was 63.00%. Extended to a five-year horizon, this rate decreased to 9.80% per year. And over the past decade, Heidelberg Materials AG's annual dividends per share growth rate stands at an impressive 15.70%.
Based on Heidelberg Materials AG's dividend yield and five-year growth rate, the 5-year yield on cost of Heidelberg Materials AG stock as of today is approximately 4.12%.
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, Heidelberg Materials AG's dividend payout ratio is 0.24.
Heidelberg Materials AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Heidelberg Materials AG's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Heidelberg Materials AG'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 Heidelberg Materials AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Heidelberg Materials AG's revenue has increased by approximately 8.90% per year on average, a rate that outperforms approximately 56.01% of global competitors.
Next Steps
Considering Heidelberg Materials AG's stable dividend payments, impressive dividend growth rate, prudent payout ratio, strong profitability, and robust growth metrics, the company stands out as a potentially strong candidate for dividend investors. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize 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.
