ISS A/S's Dividend Analysis

In This Article:

Unveiling the Dividend Profile of ISS A/S

ISS A/S (ISSDY) recently announced a dividend of $0.17 per share, payable on 2024-04-23, 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 ISS A/S's dividend performance and assess its sustainability.

What Does ISS A/S Do?

ISS A/S is a provider of workplace and facility service solutions with a focus on cleaning, property, catering, support, security, and facility management. It has three segments; office-based, production-based, and healthcare. Its core services offering to customers consist of cleaning, food, technical, and workplace services. Revenue is mainly generated in European end markets, with the majority earned in the United Kingdom.

ISS A/S's Dividend Analysis
ISS A/S's Dividend Analysis

A Glimpse at ISS A/S's Dividend History

ISS A/S has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down ISS A/S's Dividend Yield and Growth

As of today, ISS A/S currently has a 12-month trailing dividend yield of 1.75% and a 12-month forward dividend yield of 1.89%. This suggests an expectation of increased dividend payments over the next 12 months.

Based on ISS A/S's dividend yield and five-year growth rate, the 5-year yield on cost of ISS A/S stock as of today is approximately 1.75%.

ISS A/S's Dividend Analysis
ISS A/S's Dividend Analysis

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, ISS A/S's dividend payout ratio is 0.22.

ISS A/S's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ISS A/S's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. ISS A/S's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and ISS A/S's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ISS A/S's revenue has increased by approximately 3.10% per year on average, a rate that underperforms than approximately 62.79% of global competitors.