Yahoo Finance Allreal Holding Ltd's Dividend Analysis
Assessing the Sustainability of Allreal Holding Ltd's Dividend
Allreal Holding Ltd (ALRHF) recently announced a dividend of $7 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-04-23. 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 Allreal Holding Ltd's dividend performance and assess its sustainability.
What Does Allreal Holding Ltd Do?
Warning! GuruFocus has detected 10 Warning Signs with ALRHF.
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Allreal Holding Ltd is a real estate portfolio company in Switzerland. The company divides its business into two segments: real estate and project & development. The real estate division has three subdivisions: portfolio management, real estate management, and Building Management. The company's investment portfolio is mainly composed of commercial properties with a small section of residential investments. The project & development division offers a range of services, stretching from site and ground analysis through the construction of the project. The company develops projects in all segments of real estate for private and institutional investors and owners, and its portfolio. The company operates exclusively in Switzerland with the majority of its business in the Zurich area.
A Glimpse at Allreal Holding Ltd's Dividend History
Allreal Holding Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Allreal Holding Ltd's Dividend Yield and Growth
As of today, Allreal Holding Ltd currently has a 12-month trailing dividend yield of 4.58% and a 12-month forward dividend yield of 4.52%. This suggests an expectation of a slight decrease in dividend payments over the next 12 months.
Over the past three years, Allreal Holding Ltd's annual dividend growth rate was 1.20%. Extended to a five-year horizon, this rate increased to 2.30% per year. And over the past decade, Allreal Holding Ltd's annual dividends per share growth rate stands at 3.00%.
Based on Allreal Holding Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Allreal Holding Ltd stock as of today is approximately 5.13%.
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, Allreal Holding Ltd's dividend payout ratio is 1.75, which may suggest that the company's dividend could be at risk.
Allreal Holding Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Allreal Holding Ltd's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of the year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Allreal Holding Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Allreal Holding Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Allreal Holding Ltd's revenue has increased by approximately -7.20% per year on average, a rate that underperforms approximately 74.32% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Allreal Holding Ltd's earnings increased by approximately -27.90% per year on average, a rate that underperforms approximately 82.73% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -16.70%, which underperforms approximately 83.43% of global competitors.
Next Steps
Considering Allreal Holding Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors should weigh the attractive yield against the risks posed by the company's recent underperformance in revenue and earnings growth. While the company's profitability remains strong, the sustainability of its dividend in light of these growth challenges merits close attention. Investors may want to monitor Allreal Holding Ltd's future earnings reports and strategic plans to better gauge the long-term viability of its dividend payments. For those seeking high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover other potential investments.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
