Yahoo Finance Scandinavian Tobacco Group A/S's Dividend Analysis
Insights into Scandinavian Tobacco Group A/S's Upcoming Dividend Payment and Financial Health
Scandinavian Tobacco Group A/S (SNDVF) recently announced a dividend of $8.4 per share, payable on 2024-04-09, with the ex-dividend date set for 2024-04-05. 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 Scandinavian Tobacco Group A/S's dividend performance and assess its sustainability.
What Does Scandinavian Tobacco Group A/S Do?
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Scandinavian Tobacco Group A/S offers cigars, pipe tobacco, and accessories in North America, Europe, and Australia. It operates in three segments: North America online and retail, which primarily sells handmade cigars and accessories in stores and online; North America branded and the Rest of the World, which provides its products to wholesalers and distributors; Europe Branded comprises sale of all product categories to wholesalers, distributors and direct to retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, the UK, and Ireland.
A Glimpse at Scandinavian Tobacco Group A/S's Dividend History
Scandinavian Tobacco Group A/S has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Scandinavian Tobacco Group A/S's Dividend Yield and Growth
As of today, Scandinavian Tobacco Group A/S currently has a 12-month trailing dividend yield of 6.75% and a 12-month forward dividend yield of 6.85%. This suggests an expectation of an increase in dividend payments over the next 12 months.
Over the past three years, Scandinavian Tobacco Group A/S's annual dividend growth rate was 10.60%. Extended to a five-year horizon, this rate decreased to 7.50% per year. Based on Scandinavian Tobacco Group A/S's dividend yield and five-year growth rate, the 5-year yield on cost of Scandinavian Tobacco Group A/S stock as of today is approximately 9.69%.
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, Scandinavian Tobacco Group A/S's dividend payout ratio is 0.57.
Scandinavian Tobacco Group A/S's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Scandinavian Tobacco Group A/S'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. Scandinavian Tobacco Group A/S'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 Scandinavian Tobacco Group A/S's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Scandinavian Tobacco Group A/S's revenue has increased by approximately 7.80% per year on average, a rate that outperforms approximately 62.79% 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, Scandinavian Tobacco Group A/S's earnings increased by approximately 13.40% per year on average, a rate that outperforms approximately 64.29% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -2.80%, which outperforms approximately 12.12% of global competitors.
Next Steps
In conclusion, Scandinavian Tobacco Group A/S's upcoming dividend, consistent dividend growth rate, manageable payout ratio, strong profitability, and positive growth metrics paint a picture of a robust company with a sustainable dividend policy. These factors make Scandinavian Tobacco Group A/S an interesting consideration for value investors seeking income-generating investments. As the company continues to navigate through the complexities of the tobacco industry, will its strategic initiatives and market position allow it to maintain this dividend momentum? Only time will tell, but the current indicators are promising. For those interested in expanding their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener for further research.
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.
