Yahoo Finance ISS A/S's Dividend Analysis
Unveiling the Dividend Profile of ISS A/S
ISS A/S (ISSDY) recently announced a dividend of $0.17 per share, payable on 2024-04-23, with the ex-dividend date set for 2024-04-12. 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 ISS A/S's dividend performance and assess its sustainability.
What Does ISS A/S Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
ISS A/S is a provider of workplace and facility service solutions with a focus on cleaning, property, catering, support, security, and facility management. It has three segments; office-based, production-based, and healthcare. Its core services offering to customers consist of cleaning, food, technical, and workplace services. Revenue is mainly generated in European end markets, with the majority earned in the United Kingdom.
A Glimpse at ISS A/S's Dividend History
ISS A/S has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ISS A/S's Dividend Yield and Growth
As of today, ISS A/S currently has a 12-month trailing dividend yield of 1.75% and a 12-month forward dividend yield of 1.89%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on ISS A/S's dividend yield and five-year growth rate, the 5-year yield on cost of ISS A/S stock as of today is approximately 1.75%.
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, ISS A/S's dividend payout ratio is 0.22.
ISS A/S's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ISS A/S'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. ISS A/S'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 ISS A/S's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ISS A/S's revenue has increased by approximately 3.10% per year on average, a rate that underperforms than approximately 62.79% of global competitors.
Next Steps
The dividend profile of ISS A/S (ISSDY) reflects a company committed to returning value to its shareholders through consistent dividend payments. With a modest dividend growth rate, a prudent payout ratio, and fair profitability metrics, ISS A/S appears to be positioning itself for sustained dividend distributions. However, the relatively slower revenue growth compared to industry peers signals the need for potential investors to consider how ISS A/S will navigate and leverage future market opportunities to enhance its financial performance. As dividends are a reflection of a company's health and prospects, evaluating ISS A/S's strategic initiatives and competitive position in the facility services sector will be crucial for investors aiming to benefit from long-term dividend income.
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.
