Yahoo Finance Hapag-Lloyd AG's Dividend Analysis
Exploring the Sustainability and Growth of Hapag-Lloyd AG's Dividends
Hapag-Lloyd AG (HPGLY) recently announced a dividend of $4.96 per share, payable on 2024-05-21, with the ex-dividend date set for 2024-05-02. 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 Hapag-Lloyd AG's dividend performance and assess its sustainability.
What Does Hapag-Lloyd AG Do?
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Hapag-Lloyd AG is a global liner shipping company engaged in the transportation of various products which include food products, chemical products, mechanical engineering products, raw materials, textiles, and other products through containers and vessels. Hapag also provides various services such as e-business solutions, security information services, and special cargo services. Its geographical area of operation includes Atlantic, Transpacific, Far East, Middle East, Latin America, Intra-Asia, and Africa.
A Glimpse at Hapag-Lloyd AG's Dividend History
Hapag-Lloyd AG has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hapag-Lloyd AG's Dividend Yield and Growth
As of today, Hapag-Lloyd AG currently has a 12-month trailing dividend yield of 37.99% and a 12-month forward dividend yield of 5.43%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Hapag-Lloyd AG's annual dividend growth rate was 285.50%. Extended to a five-year horizon, this rate decreased to 223.00% per year. Based on Hapag-Lloyd AG's dividend yield and five-year growth rate, the 5-year yield on cost of Hapag-Lloyd AG stock as of today is approximately 13,356.17%.
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, Hapag-Lloyd AG's dividend payout ratio is 3.77, which may suggest that the company's dividend may not be sustainable. Hapag-Lloyd AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hapag-Lloyd AG's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 8 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. Hapag-Lloyd AG'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 Hapag-Lloyd AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hapag-Lloyd AG's revenue has increased by approximately 12.00% per year on average, a rate that outperforms approximately 60.91% 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, Hapag-Lloyd AG's earnings increased by approximately 46.50% per year on average, a rate that outperforms approximately 78.12% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 186.30%, which outperforms approximately 99.12% of global competitors.
Next Steps
Considering Hapag-Lloyd AG's robust dividend payments, impressive growth rate, manageable payout ratio, and strong profitability metrics, the company appears well-positioned to continue rewarding its shareholders. However, investors should keep an eye on the payout ratio and profitability to ensure these dividends can be sustained in the long term. 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.
