Yahoo Finance Bank Leumi Le-Israel BM's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Bank Leumi Le-Israel BM (BLMIF)
Bank Leumi Le-Israel BM (BLMIF) recently announced a dividend of $0.55 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-06-10. 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 Bank Leumi Le-Israel BM's dividend performance and assess its sustainability.
What Does Bank Leumi Le-Israel BM Do?
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Bank Leumi Le-Israel BM is an Israeli banking and financial services company. The products and services offered by the company include consumer loans, mortgages, commercial banking services, and capital market services, among others. The company organizes itself into several operating segments: Banking; Mortgages; Commercial; Corporate banking; Real estate; Capital markets and Others. The company generates the majority of its revenue through the provision of banking and services to private customers and small businesses, and a vast majority of its revenue is earned in Israel.
A Glimpse at Bank Leumi Le-Israel BM's Dividend History
Bank Leumi Le-Israel BM has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bank Leumi Le-Israel BM's Dividend Yield and Growth
As of today, Bank Leumi Le-Israel BM currently has a 12-month trailing dividend yield of 3.78% and a 12-month forward dividend yield of 4.97%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bank Leumi Le-Israel BM's annual dividend growth rate was 88.30%. Extended to a five-year horizon, this rate decreased to 13.60% per year. Based on Bank Leumi Le-Israel BM's dividend yield and five-year growth rate, the 5-year yield on cost of Bank Leumi Le-Israel BM stock as of today is approximately 7.15%.
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, Bank Leumi Le-Israel BM's dividend payout ratio is 0.20.
Bank Leumi Le-Israel BM's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bank Leumi Le-Israel BM's profitability 6 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported positive net income for each of 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. Bank Leumi Le-Israel BM'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 Bank Leumi Le-Israel BM's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bank Leumi Le-Israel BM's revenue has increased by approximately 15.30% per year on average, a rate that outperforms approximately 76.81% 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, Bank Leumi Le-Israel BM's earnings increased by approximately 46.90% per year on average, a rate that outperforms approximately 86.64% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 23.60%, which outperforms approximately 87.15% of global competitors.
In conclusion, Bank Leumi Le-Israel BM demonstrates a strong dividend payout track record, supported by robust profitability and growth metrics. These factors not only underscore the sustainability of its dividends but also paint a promising picture for future dividend growth. For investors seeking to explore more high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
