Yahoo Finance Pandora A/S's Dividend Analysis
Unlocking the Value of Pandora A/S's Upcoming Dividend
Pandora A/S (PANDY) recently announced a dividend of $0.65 per share, payable on 2024-03-26, with the ex-dividend date set for 2024-03-15. 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 Pandora A/S's dividend performance and assess its sustainability.
What Does Pandora A/S Do?
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Pandora is a premium jewelry brand and the market leader in the charm bracelet category. The company was established in the 1980s in Denmark and since then has expanded globally. Pandora has over 2,500 concept stores globally (1,600 owned and operated, and the remainder run by its franchise partners) as well as multibrand locations and stores-in-stores. Pandora owned retail accounts for 51% of sales, own online channels for 21% and wholesale for the remainder. Charms and bracelets account for almost three fourths of its sales. The firm produces mostly internally in two jewelry-crafting facilities in Thailand.
A Glimpse at Pandora A/S's Dividend History
Pandora A/S has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Pandora A/S's Dividend Yield and Growth
As of today, Pandora A/S currently has a 12-month trailing dividend yield of 1.32% and a 12-month forward dividend yield of 1.50%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Pandora A/S's annual dividend growth rate was 21.10%. Based on Pandora A/S's dividend yield and five-year growth rate, the 5-year yield on cost of Pandora A/S stock as of today is approximately 1.32%.
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, Pandora A/S's dividend payout ratio is 0.28.
Pandora A/S's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pandora A/S's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Pandora A/S's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Pandora A/S's revenue has increased by approximately 18.80% per year on average, a rate that outperforms approximately 80.33% 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, Pandora A/S's earnings increased by approximately 42.70% per year on average, a rate that outperforms approximately 81.37% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.80%, which outperforms approximately 54.69% of global competitors, indicates a solid foundation for future dividend payments.
Next Steps
In conclusion, Pandora A/S's upcoming dividend, alongside its history of consistent dividend payments, robust dividend growth rate, prudent payout ratio, and strong profitability and growth metrics, presents a compelling case for value investors. The company's financial health and strategic position suggest that it may continue to be a reliable source of dividend income. However, as with all investments, it is essential to perform due diligence and consider the broader market context. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover potential opportunities.
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.
