Banco do Brasil SA BB Brasil's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Banco do Brasil SA BB Brasil (BDORY)
Banco do Brasil SA BB Brasil (BDORY) recently announced a dividend of $0.04 per share, payable on 2024-07-08, with the ex-dividend date set for 2024-06-17. 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 Banco do Brasil SA BB Brasil's dividend performance and assess its sustainability.
What Does Banco do Brasil SA BB Brasil Do?
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Banco do Brasil SA BB Brasil is a Brazilian financial services company present in several countries. The business segments are Banking, Investments, Fund Management, Insurance, Electronic payments, and others. Majority of the revenue is generated from its Banking segment. Banco do Brasil serves retail clients (small and midsize enterprises and individuals), wholesale clients (corporations), and public institutions. The products and services portfolio includes accounts, Loans, cards, financing, and others.
A Glimpse at Banco do Brasil SA BB Brasil's Dividend History
Banco do Brasil SA BB Brasil has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Banco do Brasil SA BB Brasil's Dividend Yield and Growth
As of today, Banco do Brasil SA BB Brasil currently has a 12-month trailing dividend yield of 4.34% and a 12-month forward dividend yield of 4.41%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Banco do Brasil SA BB Brasil's annual dividend growth rate was 28.70%. Extended to a five-year horizon, this rate decreased to 22.40% per year. And over the past decade, Banco do Brasil SA BB Brasil's annual dividends per share growth rate stands at 7.00%.
Based on Banco do Brasil SA BB Brasil's dividend yield and five-year growth rate, the 5-year yield on cost of Banco do Brasil SA BB Brasil stock as of today is approximately 11.92%.
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, Banco do Brasil SA BB Brasil's dividend payout ratio is 0.30.
Banco do Brasil SA BB Brasil's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Banco do Brasil SA BB Brasil's profitability 6 out of 10 as of 2024-03-31, suggesting fair profitability. 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. Banco do Brasil SA BB Brasil's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Banco do Brasil SA BB Brasil's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Banco do Brasil SA BB Brasil's revenue has increased by approximately 17.00% per year on average, a rate that outperforms approximately 80.25% 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, Banco do Brasil SA BB Brasil's earnings increased by approximately 39.20% per year on average, a rate that outperforms approximately 81.94% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.30%, which outperforms approximately 85.71% of global competitors.
Conclusion
With a solid track record of dividend payments, a robust dividend growth rate, a favorable payout ratio, strong profitability, and impressive growth metrics, Banco do Brasil SA BB Brasil (BDORY) presents a compelling case for investors seeking stable dividend income. As the financial landscape evolves, Banco do Brasil SA BB Brasil appears well-positioned to maintain its dividend payouts, supported by its financial health and market position. Investors should consider these factors when evaluating the stock for their investment portfolios.
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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.