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Lagardere SA's Dividend Analysis

An In-Depth Look at Lagardere SA's Upcoming Dividend Payout

Lagardere SA (LGDDF) recently announced a dividend of $0.65 per share, payable on 2024-04-30, with the ex-dividend date set for 2024-04-26. 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 Lagardere SA's dividend performance and assess its sustainability.

What Does Lagardere SA Do?

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Lagardere SA is in the business of content publishing, production, broadcasting, and distribution. It is also engaged in the travel retail business with various brands such as Relay and Aelia Duty-Free, and other selective distribution brands. The company operates through divisions: Lagardere Publishing, Lagardere Travel Retail, and others.

Lagardere SA's Dividend Analysis
Lagardere SA's Dividend Analysis

A Glimpse at Lagardere SA's Dividend History

Lagardere SA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Lagardere SA's Dividend Yield and Growth

As of today, Lagardere SA currently has a 12-month trailing dividend yield of 6.21% and a 12-month forward dividend yield of 3.07%. This suggests an expectation of decreased dividend payments over the next 12 months.

Based on Lagardere SA's dividend yield and five-year growth rate, the 5-year yield on cost of Lagardere SA stock as of today is approximately 6.21%.

Lagardere SA's Dividend Analysis
Lagardere SA's Dividend Analysis

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, Lagardere SA's dividend payout ratio is 0.91, which may suggest that the company's dividend may not be sustainable.

Lagardere SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Lagardere SA's profitability 5 out of 10 as of 2023-12-31, 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. Lagardere SA'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 Lagardere SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Lagardere SA's revenue has increased by approximately 18.40% per year on average, a rate that outperforms approximately 65.55% of global competitors.

Concluding Insights on Lagardere SA's Dividend Profile

Considering Lagardere SA's consistent dividend history, the current yield, and its payout ratio, investors should weigh the sustainability of future dividends. While the profitability and growth metrics suggest a fair position, the high payout ratio may raise concerns about the long-term viability of such dividend levels. Investors are encouraged to consider these factors in light of their investment strategy and the company's potential to navigate the dynamic publishing and retail landscape.

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.