Scandinavian Tobacco Group A/S's Dividend Analysis
In This Article:
Insights into Scandinavian Tobacco Group A/S's Upcoming Dividend Payment and Financial Health
Scandinavian Tobacco Group A/S (SNDVF) recently announced a dividend of $8.4 per share, payable on 2024-04-09, with the ex-dividend date set for 2024-04-05. 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 Scandinavian Tobacco Group A/S's dividend performance and assess its sustainability.
What Does Scandinavian Tobacco Group A/S Do?
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Scandinavian Tobacco Group A/S offers cigars, pipe tobacco, and accessories in North America, Europe, and Australia. It operates in three segments: North America online and retail, which primarily sells handmade cigars and accessories in stores and online; North America branded and the Rest of the World, which provides its products to wholesalers and distributors; Europe Branded comprises sale of all product categories to wholesalers, distributors and direct to retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, the UK, and Ireland.
A Glimpse at Scandinavian Tobacco Group A/S's Dividend History
Scandinavian Tobacco Group A/S has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Scandinavian Tobacco Group A/S's Dividend Yield and Growth
As of today, Scandinavian Tobacco Group A/S currently has a 12-month trailing dividend yield of 6.75% and a 12-month forward dividend yield of 6.85%. This suggests an expectation of an increase in dividend payments over the next 12 months.
Over the past three years, Scandinavian Tobacco Group A/S's annual dividend growth rate was 10.60%. Extended to a five-year horizon, this rate decreased to 7.50% per year. Based on Scandinavian Tobacco Group A/S's dividend yield and five-year growth rate, the 5-year yield on cost of Scandinavian Tobacco Group A/S stock as of today is approximately 9.69%.
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, Scandinavian Tobacco Group A/S's dividend payout ratio is 0.57.