Yahoo Finance Bayerische Motoren Werke AG's Dividend Analysis
Exploring the Sustainability and Growth of BMWYY's Dividends
Bayerische Motoren Werke AG (BMWYY) recently announced a dividend of $2.13 per share, payable on 2024-05-31, with the ex-dividend date set for 2024-05-16. 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 Bayerische Motoren Werke AG's dividend performance and assess its sustainability.
What Does Bayerische Motoren Werke AG Do?
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In addition to being one of the world's leading premium light-vehicle manufacturers, BMW Group produces BMW motorcycles and provides financial services. Premium light-vehicle brands include BMW, Mini, and ultraluxury brand Rolls-Royce. Operations include 31 production facilities in 15 countries, research and development facilities in 17 countries, and a sales network reaching over 140 countries. In 2023, worldwide sales volume was over 2.5 million automobiles and over 209,000 motorcycles.
A Glimpse at Bayerische Motoren Werke AG's Dividend History
Bayerische Motoren Werke 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 Bayerische Motoren Werke AG's Dividend Yield and Growth
As of today, Bayerische Motoren Werke AG currently has a 12-month trailing dividend yield of 8.29% and a 12-month forward dividend yield of 5.74%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Bayerische Motoren Werke AG's annual dividend growth rate was 50.40%. Extended to a five-year horizon, this rate decreased to 15.40% per year. And over the past decade, Bayerische Motoren Werke AG's annual dividends per share growth rate stands at 7.10%.
Based on Bayerische Motoren Werke AG's dividend yield and five-year growth rate, the 5-year yield on cost of Bayerische Motoren Werke AG stock as of today is approximately 16.97%.
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, Bayerische Motoren Werke AG's dividend payout ratio is 0.51.
Bayerische Motoren Werke AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bayerische Motoren Werke 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 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. Bayerische Motoren Werke 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 Bayerische Motoren Werke AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bayerische Motoren Werke AG's revenue has increased by approximately 21.30% per year on average, a rate that outperforms approximately 81.56% 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, Bayerische Motoren Werke AG's earnings increased by approximately 45.90% per year on average, a rate that outperforms approximately 78.31% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 24.50%, which outperforms approximately 79.82% of global competitors.
Next Steps
Considering Bayerische Motoren Werke AG's strong dividend payments, growth in dividend rates, sustainable payout ratios, and robust profitability and growth metrics, the company presents a compelling case for investors seeking stable dividend income. As the automotive industry continues to evolve, keeping an eye on these financial metrics will be crucial for assessing future dividend sustainability and growth. For investors looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers tools like 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.
