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Raiffeisen Bank International AG's Dividend Analysis

Assessing the Dividend Profile of Raiffeisen Bank International AG

Raiffeisen Bank International AG (RAIFY) recently announced a dividend of $0.34 per share, payable on 2024-04-26, with the ex-dividend date set for 2024-04-09. 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 Raiffeisen Bank International AG's dividend performance and assess its sustainability.

What Does Raiffeisen Bank International AG Do?

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Raiffeisen Bank International AG, part of Raiffeisen Banking Group, is a prominent banking group in Austria. With Austria and Central and Western Europe as its home markets, Raiffeisen Bank International AG operates across Central Europe, Southeastern Europe, and Eastern Europe, offering a broad range of financial services.

Raiffeisen Bank International AG's Dividend Analysis
Raiffeisen Bank International AG's Dividend Analysis

A Glimpse at Raiffeisen Bank International AG's Dividend History

Raiffeisen Bank International AG has maintained a consistent dividend payment record since 2023, distributing dividends on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Raiffeisen Bank International AG's Dividend Yield and Growth

As of today, Raiffeisen Bank International AG currently has a 12-month trailing dividend yield of 4.25% and a 12-month forward dividend yield of 6.53%, suggesting an expectation of increased dividend payments over the next 12 months. Based on Raiffeisen Bank International AG's dividend yield and five-year growth rate, the 5-year yield on cost is approximately 4.25%.

Raiffeisen Bank International AG's Dividend Analysis
Raiffeisen Bank International AG'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. Raiffeisen Bank International AG's dividend payout ratio is 0.12 as of 2023-12-31, indicating that a significant portion of earnings is retained for future growth and unexpected downturns. Furthermore, the company's profitability rank of 5 out of 10, along with a history of net profit in 9 out of the past 10 years, suggests fair profitability.

Growth Metrics: The Future Outlook

Robust growth metrics are essential for the sustainability of dividends. Raiffeisen Bank International AG's growth rank of 5 out of 10 indicates a fair growth outlook. The company's strong revenue model is evidenced by an average annual increase in revenue per share of approximately 21.40%, outperforming approximately 88.44% of global competitors. Additionally, Raiffeisen Bank International AG's earnings have increased by an average of 44.20% per year over the past three years, outperforming approximately 87.74% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 17.60% outperforms approximately 80.07% of global competitors.

Concluding Thoughts on Raiffeisen Bank International AG's Dividend Profile

In conclusion, Raiffeisen Bank International AG's upcoming dividend, along with its historical performance, yield, and growth rates, paints a picture of a bank with a commitment to returning value to shareholders. The company's conservative payout ratio, fair profitability, and solid growth metrics bode well for the sustainability of future dividends. Investors seeking income-generating stocks may find Raiffeisen Bank International AG an attractive option, but as always, it's essential to consider the overall investment thesis and how it fits into one's portfolio strategy. Will Raiffeisen Bank International AG continue to reward its shareholders with stable and growing dividends? Only time will tell, but the indicators seem promising.

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.