Schindler Holding AG's Dividend Analysis
In This Article:
Understanding the Dividend Prospects of Schindler Holding AG (SHLRF)
Schindler Holding AG (SHLRF) recently announced a dividend of $4 per share, payable on 2024-03-25, with the ex-dividend date set for 2024-03-21. 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 Schindler Holding AG's dividend performance and assess its sustainability.
What Does Schindler Holding AG Do?
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Switzerland-based Schindler is a top-four global supplier of elevators and escalators. The business generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing existing installations. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. Ninety percent of its business is in elevators, which are more numerous globally than escalators. Its business model is similar to that of closest competitors Otis, Kone, and TK Elevator.
A Glimpse at Schindler Holding AG's Dividend History
Schindler Holding AG has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Schindler Holding AG's Dividend Yield and Growth
As of today, Schindler Holding AG currently has a 12-month trailing dividend yield of 1.64% and a 12-month forward dividend yield of 1.70%. This suggests an expectation of increased dividend payments over the next 12 months. And over the past decade, Schindler Holding AG's annual dividends per share growth rate stands at 7.80%.
Based on Schindler Holding AG's dividend yield and five-year growth rate, the 5-year yield on cost of Schindler Holding AG stock as of today is approximately 1.64%.
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, Schindler Holding AG's dividend payout ratio is 0.60.