Yahoo Finance Akbank TAS's Dividend Analysis
Investigating the Sustainability of Akbank TAS's Upcoming Dividend
Akbank TAS (AKBTY) recently announced a dividend of $0.12 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-26. 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 Akbank TAS's dividend performance and assess its sustainability.
What Does Akbank TAS Do?
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Akbank TAS is a Turkish bank whose core business activities include consumer and private, commercial, small to midsize enterprise, and corporate and investment banking services. Other activities include foreign exchange, money markets, and securities transactions. In addition to traditional banking activities, the company provides insurance intermediary services. Approximately half of the bank's outstanding shares are owned by Sabanci Holding, a large Turkish financial conglomerate, and its affiliates. Net interest income contributes to the vast majority of net revenue, followed by net fees and commissions. The bank gives credit exposure to the services industry.
A Glimpse at Akbank TAS's Dividend History
Akbank TAS 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 Akbank TAS's Dividend Yield and Growth
As of today, Akbank TAS currently has a 12-month trailing dividend yield of 6.21% and a 12-month forward dividend yield of 4.15%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Akbank TAS's dividend yield and five-year growth rate, the 5-year yield on cost of Akbank TAS stock as of today is approximately 6.21%.
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, Akbank TAS's dividend payout ratio is 0.17.
Akbank TAS's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Akbank TAS's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each 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. Akbank TAS'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 Akbank TAS's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Akbank TAS's revenue has increased by approximately 79.60% per year on average, a rate that outperforms approximately 98.5% 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, Akbank TAS's earnings increased by approximately 119.50% per year on average, a rate that outperforms approximately 97.6% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 70.90%, which outperforms approximately 98.63% of global competitors.
Next Steps
In conclusion, Akbank TAS's upcoming dividend payment reflects a history of consistent shareholder returns. The combination of a reasonable payout ratio and fair profitability indicates that the dividend is sustainable in the short term. Moreover, the strong growth metrics showcase Akbank TAS's potential to maintain or even increase its dividend in the future. Investors considering Akbank TAS for its dividend prospects should also weigh these factors alongside their investment strategy. For in-depth research, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
