Atlas Copco AB's Dividend Analysis
In This Article:
Insights into Atlas Copco AB's Upcoming Dividend Payment
Atlas Copco AB (ATLKY) recently announced a dividend of $0.14 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-04-25. 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 Atlas Copco AB's dividend performance and assess its sustainability.
What Does Atlas Copco AB Do?
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Atlas Copco is a 140-year-old Swedish company that pioneered air compression technology and remains a leading air compressor manufacturer. Atlas Copco is also a leading manufacturer of vacuum pump equipment, industrial power tools, and portable power and air compression equipment. The company's operations match the geographic breadth of its customers, with a presence in 180 countries. Atlas Copco's revenue is derived from three sources: initial equipment sales, spare parts, and maintenance.
A Glimpse at Atlas Copco AB's Dividend History
Atlas Copco AB has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Atlas Copco AB's Dividend Yield and Growth
As of today, Atlas Copco AB currently has a 12-month trailing dividend yield of 1.33% and a 12-month forward dividend yield of 1.64%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Atlas Copco AB's annual dividend growth rate was 9.50%. Extended to a five-year horizon, this rate decreased to -5.10% per year. And over the past decade, Atlas Copco AB's annual dividends per share growth rate stands at 4.30%.
Based on Atlas Copco AB's dividend yield and five-year growth rate, the 5-year yield on cost of Atlas Copco AB stock as of today is approximately 1.02%.
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, Atlas Copco AB's dividend payout ratio is 0.41.