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Randstad NV's Dividend Analysis

Exploring the Sustainability of Randstad NV's Upcoming Dividend

Randstad NV (RANJY) recently announced a dividend of $1.22 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-04-01. 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 Randstad NV's dividend performance and assess its sustainability.

What Does Randstad NV Do?

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Randstad NV is engaged in the HR services industry. The company is the largest HR services provider and is driven to become the most valued working life partner, supporting as many people as possible in realizing their true potential throughout their working lives. It services comprises of temporary and permanent placements of talent. In addition, we offer recruitment process outsourcing services (RPO), managed services programs (MSP), payroll services, outplacement services, and job posting. The company provides companies with high-quality, diverse, and agile workforces as per need while helping people get rewarding jobs and stay relevant in the ever-changing world of work.

Randstad NV's Dividend Analysis
Randstad NV's Dividend Analysis

A Glimpse at Randstad NV's Dividend History

Randstad NV has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Randstad NV's Dividend Yield and Growth

As of today, Randstad NV currently has a 12-month trailing dividend yield of 5.59% and a 12-month forward dividend yield of 4.41%. This suggests an expectation of decreased dividend payments over the next 12 months.

Based on Randstad NV's dividend yield and five-year growth rate, the 5-year yield on cost of Randstad NV stock as of today is approximately 5.59%.

Randstad NV's Dividend Analysis
Randstad NV'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, Randstad NV's dividend payout ratio is 0.61.

Randstad NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Randstad NV's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. 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

To ensure the sustainability of dividends, a company must have robust growth metrics. Randstad NV's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.

Revenue is the lifeblood of any company, and Randstad NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Randstad NV's revenue has increased by approximately 8.00% per year on average, a rate that outperforms approximately 55.42% 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, Randstad NV's earnings increased by approximately 21.10% per year on average, a rate that outperforms approximately 64.95% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of 4.20%, which outperforms approximately 37.39% of global competitors.

Next Steps

In conclusion, Randstad NV's upcoming dividend, backed by a history of consistent payments, appears to be sustainable given its reasonable payout ratio and strong profitability rank. The company's solid growth metrics further support the likelihood of continued dividend payments. Investors considering Randstad NV for its dividend potential should also weigh these factors along with industry trends and the company's strategic initiatives. With these considerations in mind, could Randstad NV be a valuable addition to your income-generating portfolio? 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.