Solvay SA's Dividend Analysis
In This Article:
Exploring the Dividend Performance of Solvay SA (SLVYY)
Solvay SA (SLVYY) recently announced a dividend of $0.09 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-06-04. 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 Solvay SA's dividend performance and assess its sustainability.
What Does Solvay SA Do?
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Warning! GuruFocus has detected 15 Warning Signs with SLVYY.
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Solvay SA is a Belgium-based producer of chemicals, plastics, and composites. Their five major businesses include soda ash, peroxides, silica, rare earths, and fluorine. The company has a top-three market position for nearly all of its products. Key business segments include Basic Chemicals, Performance Chemicals, and Corporate. High-value products include aerospace composites and specialty polymers while traditional chemical products include soda ash and hydrogen peroxide. Geographical exposure is relatively balanced, with Europe, North America, and Asia each contributing a third of sales.
A Glimpse at Solvay SA's Dividend History
Solvay SA has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Solvay SA's Dividend Yield and Growth
As of today, Solvay SA currently has a 12-month trailing dividend yield of 12.83% and a 12-month forward dividend yield of 7.58%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Solvay SA's annual dividend growth rate was 2.60%. Extended to a five-year horizon, this rate decreased to 1.90% per year. And over the past decade, Solvay SA's annual dividends per share growth rate stands at 3.00%.
Based on Solvay SA's dividend yield and five-year growth rate, the 5-year yield on cost of Solvay SA stock as of today is approximately 14.10%.
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, Solvay SA's dividend payout ratio is 0.83, which may suggest that the company's dividend may not be sustainable.