Deutsche Boerse AG's Dividend Analysis
In This Article:
Exploring the Sustainability and Growth of Deutsche Boerse AG's Dividends
Deutsche Boerse AG (DBOEY) recently announced a dividend of $0.4 per share, payable on 2024-06-03, with the ex-dividend date set for 2024-05-15. 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 Deutsche Boerse AG's dividend performance and assess its sustainability.
What Does Deutsche Boerse AG Do?
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Deutsche Boerse is a financial exchange company headquartered in Frankfurt, Germany. The company primarily generates revenue through its Eurex and Clearstream segments. Eurex allows for the trading and clearing of derivatives. Clearstream offers custody and settlement services for domestic and international securities, as well as collateral management services. Other segments include Xetra, which generates revenue through trading and clearing cash equities, STOXX (an index business), and several others.
A Glimpse at Deutsche Boerse AG's Dividend History
Deutsche Boerse 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 Deutsche Boerse AG's Dividend Yield and Growth
As of today, Deutsche Boerse AG currently has a 12-month trailing dividend yield of 1.96% and a 12-month forward dividend yield of 2.04%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Deutsche Boerse AG's annual dividend growth rate was 7.50%. Extended to a five-year horizon, this rate decreased to 7.30% per year. Over the past decade, Deutsche Boerse AG's annual dividends per share growth rate stands at 5.70%.
Based on Deutsche Boerse AG's dividend yield and five-year growth rate, the 5-year yield on cost of Deutsche Boerse AG stock as of today is approximately 2.79%.
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, Deutsche Boerse AG's dividend payout ratio is 0.38.