Yahoo Finance Adecco Group AG's Dividend Analysis
Understanding the Next Dividend Payout for Value Investors
Adecco Group AG (AHEXY) recently announced a dividend of $1.39 per share, payable on 2024-05-02, with the ex-dividend date set for 2024-04-16. 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 Adecco Group AG's dividend performance and assess its sustainability.
What Does Adecco Group AG Do?
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Adecco Group AG is a provider of human capital solutions including Flexible placement, Permanent placement, Career Transition, Outsourcing, Consulting Services in engineering, Digital and IT, Talent services, Training, Up/ Re-skilling and Other services. It is organised into three business units Adecco, Akkodis and LHH. The company provides services to businesses and organisations located throughout Europe, North America, Asia Pacific, South America, and North Africa.
A Glimpse at Adecco Group AG's Dividend History
Adecco Group AG has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Adecco Group AG's Dividend Yield and Growth
As of today, Adecco Group AG currently has a 12-month trailing dividend yield of 7.36% and a 12-month forward dividend yield of 7.37%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Adecco Group AG's annual dividend growth rate was -2.50%. Extended to a five-year horizon, this rate increased to -0.10% per year. And over the past decade, Adecco Group AG's annual dividends per share growth rate stands at 4.60%.
Based on Adecco Group AG's dividend yield and five-year growth rate, the 5-year yield on cost of Adecco Group AG stock as of today is approximately 7.32%.
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, Adecco Group AG's dividend payout ratio is 1.30, which may suggest that the company's dividend may not be sustainable.
Adecco Group AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Adecco Group AG's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Adecco Group AG's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Adecco Group AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Adecco Group AG's revenue has increased by approximately 1.00% per year on average, a rate that underperforms approximately 68.6% of global competitors.
Next Steps for Investors
Considering Adecco Group AG's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors are equipped with critical information for their investment decisions. While the dividend history is strong and the yield is attractive, the payout ratio and growth metrics present a nuanced picture. Investors should weigh these factors in the context of their investment strategy and risk tolerance. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover other compelling investment opportunities.
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.
