Yahoo Finance Julius Baer Gruppe AG's Dividend Analysis
Insight into Julius Baer Gruppe AG's Upcoming Dividend Payment
Julius Baer Gruppe AG (JBAXY) recently announced a dividend of $0.6 per share, payable on 2024-05-01, with the ex-dividend date set for 2024-04-15. 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 Julius Baer Gruppe AG's dividend performance and assess its sustainability.
What Does Julius Baer Gruppe AG Do?
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Julius Baer Gruppe AG was founded in 1890 and expanded significantly in 2005 when it acquired three Swiss private banks and Global Asset Management from its far larger Swiss rival, UBS. In 2009, Baer spun off GAM as a separately listed firm. The acquisition of Merrill Lynch's wealth management operations outside of the U.S. in 2012 increased Baer's assets under management by 40% and increased its footprint outside of Europe. Julius Baer Gruppe AG is currently the largest pure-play private bank in Switzerland and the third-largest Swiss private bank. Baer provides private banking services principally to individuals in Switzerland and Europe and increasingly in Asia and other emerging markets.
A Glimpse at Julius Baer Gruppe AG's Dividend History
Julius Baer Gruppe AG has maintained a consistent dividend payment record since 2013, with dividends currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Julius Baer Gruppe AG's Dividend Yield and Growth
As of today, Julius Baer Gruppe AG currently has a 12-month trailing dividend yield of 5.16% and a 12-month forward dividend yield of 5.37%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Julius Baer Gruppe AG's annual dividend growth rate was 20.10%. Extended to a five-year horizon, this rate decreased to 15.00% per year. Based on Julius Baer Gruppe AG's dividend yield and five-year growth rate, the 5-year yield on cost of Julius Baer Gruppe AG stock as of today is approximately 10.38%.
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. As of 2023-12-31, Julius Baer Gruppe AG's dividend payout ratio is 1.19, which may suggest that the company's dividend may not be sustainable. Julius Baer Gruppe AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Julius Baer Gruppe AG's profitability 5 out of 10 as of 2023-12-31, 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
Julius Baer Gruppe AG'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 Julius Baer Gruppe AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Julius Baer Gruppe AG's revenue has increased by approximately 3.70% per year on average, a rate that underperforms approximately 56.5% 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, Julius Baer Gruppe AG's earnings decreased by approximately -11.90% per year on average, a rate that underperforms approximately 70.91% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 1.80%, which underperforms approximately 60.22% of global competitors.
Concluding Thoughts on Julius Baer Gruppe AG's Dividend Prospects
In conclusion, while Julius Baer Gruppe AG has a history of consistent dividend payments and a promising yield on cost, investors must be cautious due to the high payout ratio and mixed growth metrics. The company's profitability remains fair, but the sustainability of its dividends could be challenged if earnings and revenue growth do not improve. As value investors consider the potential of Julius Baer Gruppe AG, they should weigh these factors carefully and monitor the company's performance closely. Will Julius Baer Gruppe AG manage to turn around its growth metrics and maintain its dividend attractiveness? That remains a key question for investors.
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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.
