Yahoo Finance Budweiser Brewing Co APAC Ltd's Dividend Analysis
Exploring the Dividend Prospects of Budweiser Brewing Co APAC Ltd
Budweiser Brewing Co APAC Ltd (BDWBF) recently announced a dividend of $0.41 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-05-22. 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 Budweiser Brewing Co APAC Ltd's dividend performance and assess its sustainability.
What Does Budweiser Brewing Co APAC Ltd Do?
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Budweiser APAC is the largest brewer in Asia by retail sales value and the second largest by volume, according to Euromonitor. After 10% of the business was listed on the Hong Kong exchange in 2019, parent company Anheuser-Busch InBev owns close to 90% of the company's equity. Budweiser APAC's largest markets are China (roughly 80% of 2023 revenue), South Korea (12%), and India (6%). The remaining 2% comprises Japan, New Zealand, and other export markets in the Asia-Pacific region. The company predominantly produces, imports, markets, distributes, and sells a portfolio of more than 50 beer brands, both owned and licensed, including global brands Budweiser, Stella Artois, and Corona along with multicountry brands and local brands such as Hoegaarden, Cass, and Harbin.
A Glimpse at Budweiser Brewing Co APAC Ltd's Dividend History
Budweiser Brewing Co APAC 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 Budweiser Brewing Co APAC Ltd's Dividend Yield and Growth
As of today, Budweiser Brewing Co APAC Ltd currently has a 12-month trailing dividend yield of 2.54% and a 12-month forward dividend yield of 3.55%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Budweiser Brewing Co APAC Ltd's annual dividend growth rate was 13.10%. Based on Budweiser Brewing Co APAC Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Budweiser Brewing Co APAC Ltd stock as of today is approximately 2.54%.
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, Budweiser Brewing Co APAC Ltd's dividend payout ratio is 0.44.
Budweiser Brewing Co APAC Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Budweiser Brewing Co APAC Ltd's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported net profit in 7 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. Budweiser Brewing Co APAC Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Budweiser Brewing Co APAC Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Budweiser Brewing Co APAC Ltd's revenue has increased by approximately 7.20% per year on average, a rate that underperforms approximately 57.35% 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, Budweiser Brewing Co APAC Ltd's earnings increased by approximately 18.30% per year on average, a rate that underperforms approximately 49.13% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -1.10%, which underperforms approximately 79.53% of global competitors.
Conclusion: Assessing Budweiser Brewing Co APAC Ltd's Dividend Viability
Given Budweiser Brewing Co APAC Ltd's consistent dividend payments, growth in dividend rate, and strategic market positioning, the company presents a viable option for dividend-seeking investors. However, potential investors should also consider the company's moderate profitability and growth metrics, which could impact future dividend sustainability. Will Budweiser Brewing Co APAC Ltd continue to provide attractive dividend yields amidst these challenges? Only time will tell. For those interested in exploring further, 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.
