Yahoo Finance Koninklijke Ahold Delhaize NV's Dividend Analysis
Assessing the Upcoming Dividend and Historical Payouts of ADRNY
Koninklijke Ahold Delhaize NV (ADRNY) recently announced a dividend of $0.66 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-04-12. 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 Koninklijke Ahold Delhaize NV's dividend performance and assess its sustainability.
What Does Koninklijke Ahold Delhaize NV Do?
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Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming one of the largest grocers in the U.S. and a top player in many parts of Europe. The U.S. is the largest market, accounting for over 60% of group sales, with Ahold Delhaize the leading grocer on the Eastern Seaboard. The U.S. store network stretches from Maine to Georgia and includes such banners as Stop & Shop, Giant Carlisle, Giant Landover, Food Lion, Hannaford, and Peapod. The Netherlands, Belgium, and Central and Southeastern Europe, including the Czech Republic, Greece, Romania, and Serbia, account for slightly less than 40% of sales. Ahold Delhaize holds the number-one and number-two positions in these countries.
A Glimpse at Koninklijke Ahold Delhaize NV's Dividend History
Koninklijke Ahold Delhaize NV has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Koninklijke Ahold Delhaize NV's Dividend Yield and Growth
As of today, Koninklijke Ahold Delhaize NV currently has a 12-month trailing dividend yield of 3.96% and a 12-month forward dividend yield of 3.96%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, Koninklijke Ahold Delhaize NV's annual dividend growth rate was 4.00%. Extended to a five-year horizon, this rate increased to 7.40% per year. And over the past decade, Koninklijke Ahold Delhaize NV's annual dividends per share growth rate stands at 9.10%. Based on Koninklijke Ahold Delhaize NV's dividend yield and five-year growth rate, the 5-year yield on cost of Koninklijke Ahold Delhaize NV stock as of today is approximately 5.66%.
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, Koninklijke Ahold Delhaize NV's dividend payout ratio is 0.42. Koninklijke Ahold Delhaize NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Koninklijke Ahold Delhaize NV's profitability 8 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. Koninklijke Ahold Delhaize NV'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 Koninklijke Ahold Delhaize NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Koninklijke Ahold Delhaize NV's revenue has increased by approximately 9.60% per year on average, a rate that outperforms approximately 67.69% 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, Koninklijke Ahold Delhaize NV's earnings increased by approximately 4.00% per year on average, a rate that outperforms approximately 36.67% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 11.30%, which outperforms approximately 51.74% of global competitors.
Next Steps
Considering Koninklijke Ahold Delhaize NV's consistent dividend payments, solid dividend growth rate, prudent payout ratio, robust profitability, and favorable growth metrics, the company presents itself as a potentially attractive option for value investors focused on dividend income. As the company continues to navigate the competitive grocery market landscape, its financial health and strategic initiatives will play crucial roles in sustaining and potentially growing its dividends in the future. Will Koninklijke Ahold Delhaize NV maintain its dividend aristocrat status, and what could this mean for your investment strategy? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find more opportunities like ADRNY.
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.
