Ramsay Health Care Ltd's Dividend Analysis
In This Article:
Understanding Ramsay Health Care Ltd's Dividend Dynamics
Ramsay Health Care Ltd (RMYHY) recently announced a dividend of $0.07 per share, payable on 2024-04-22, with the ex-dividend date set for 2024-03-11. 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 Ramsay Health Care Ltd's dividend performance and assess its sustainability.
What Does Ramsay Health Care Ltd Do?
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Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK where it ranks fifth. Ramsay Sante, which operates the European regions other than the UK, is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.
A Glimpse at Ramsay Health Care Ltd's Dividend History
Ramsay Health Care Ltd has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ramsay Health Care Ltd's Dividend Yield and Growth
As of today, Ramsay Health Care Ltd currently has a 12-month trailing dividend yield of 1.49% and a 12-month forward dividend yield of 1.26%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Ramsay Health Care Ltd's annual dividend growth rate was -13.80%. Extended to a five-year horizon, this rate increased to -7.60% per year. And over the past decade, Ramsay Health Care Ltd's annual dividends per share growth rate stands at 3.70%.
Based on Ramsay Health Care Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Ramsay Health Care Ltd stock as of today is approximately 1.00%.
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, Ramsay Health Care Ltd's dividend payout ratio is 0.82, which may suggest that the company's dividend may not be sustainable.