Verbund AG's Dividend Analysis
In This Article:
Exploring the Sustainability and Growth of Verbund AG's Dividends
Verbund AG (OEZVY) recently announced a dividend of $0.16 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-07. 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 Verbund AG's dividend performance and assess its sustainability.
What Does Verbund AG Do?
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Founded in 1947 through a nationalization act, Verbund is the leading power producer in Austria. The Austrian state owns 51% of its capital. Hydro accounts for more than 90% of the total power output. Hydro power is generated from reservoirs and pumped storage plants in the Austrian Alps, and run-of-river plants in Austria and southern Germany. Total hydro capacity amounts to 8.4 GW. Verbund also owns the Austrian electricity grid through its fully owned subsidiary AP. In 2021, the firm acquired 51% of Gas Connect Austria, a gas transmission and distribution system operator. The group also owns one CCGT and is involved in trading and development of wind and solar capacity.
A Glimpse at Verbund AG's Dividend History
Verbund AG has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Verbund AG's Dividend Yield and Growth
As of today, Verbund AG currently has a 12-month trailing dividend yield of 3.35% and a 12-month forward dividend yield of 4.62%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Verbund AG's annual dividend growth rate was 52.40%. Extended to a five-year horizon, this rate decreased to 39.40% per year. And over the past decade, Verbund AG's annual dividends per share growth rate stands at an impressive 13.80%.
Based on Verbund AG's dividend yield and five-year growth rate, the 5-year yield on cost of Verbund AG stock as of today is approximately 17.63%.
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, Verbund AG's dividend payout ratio is 0.40. Verbund AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Verbund AG's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.