Yahoo Finance Compagnie de Saint-Gobain SA's Dividend Analysis
Exploring the Dividend Sustainability and Growth Prospects of Compagnie de Saint-Gobain SA (CODYY)
Compagnie de Saint-Gobain SA (CODYY) recently announced a dividend of $0.45 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-06-07. 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 Compagnie de Saint-Gobain SA's dividend performance and assess its sustainability.
What Does Compagnie de Saint-Gobain SA Do?
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Compagnie de Saint-Gobain SA is a manufacturer of building materials that are primarily supplied to the construction industry. The company offers a vast range of products ranging from glass windows to plaster-based products and piping systems, as well as a distribution business. Saint-Gobain has a well-documented history stretching back to the 17th century, with traces of its products visible across France's most prominent landmarks. Approximately two thirds of sales are generated in Europe, with France contributing 26% of group sales.
A Glimpse at Compagnie de Saint-Gobain SA's Dividend History
Compagnie de Saint-Gobain SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Compagnie de Saint-Gobain SA's Dividend Yield and Growth
As of today, Compagnie de Saint-Gobain SA currently has a 12-month trailing dividend yield of 2.45% and a 12-month forward dividend yield of 2.56%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Compagnie de Saint-Gobain SA's dividend yield and five-year growth rate, the 5-year yield on cost of Compagnie de Saint-Gobain SA stock as of today is approximately 2.45%.
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, Compagnie de Saint-Gobain SA's dividend payout ratio is 0.36. Compagnie de Saint-Gobain SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Compagnie de Saint-Gobain SA's profitability 7 out of 10 as of 2023-12-31, 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. Compagnie de Saint-Gobain SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Compagnie de Saint-Gobain SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Compagnie de Saint-Gobain SA's revenue has increased by approximately 9.90% per year on average, a rate that outperforms approximately 61.61% 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, Compagnie de Saint-Gobain SA's earnings increased by approximately 31.20% per year on average, a rate that outperforms approximately 74.42% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 15.30%, which outperforms approximately 70.04% of global competitors.
Conclusion
With a solid dividend history, a sustainable payout ratio, and robust growth metrics, Compagnie de Saint-Gobain SA (CODYY) presents itself as an attractive option for investors seeking steady dividend income with growth potential. As the company continues to navigate the complexities of the global market, its commitment to maintaining and growing dividends is evident. Investors looking for reliable dividend stocks should consider Compagnie de Saint-Gobain SA as a potential addition to their portfolios. 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.
