Exploring the Sustainability and Growth of Air Liquide SA's Dividends
Air Liquide SA (AIQUY, Financial) recently announced a dividend of $0.68 per share, payable on June 14, 2024, with the ex-dividend date set for May 16, 2024. 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 Air Liquide SA's dividend performance and assess its sustainability.
What Does Air Liquide SA Do?
Founded in 1902, Air Liquide is one of the leading industrial gas companies in the world, serving over 3.8 million customers in 78 countries. The company generated approximately EUR 27.6 billion of revenue in 2023, serving a wide range of industries, including chemicals, energy, healthcare, food and beverage, and electronics. Air Liquide employs approximately 65,000 people.
A Glimpse at Air Liquide SA's Dividend History
Air Liquide SA has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Air Liquide SA's Dividend Yield and Growth
As of today, Air Liquide SA currently has a 12-month trailing dividend yield of 1.60% and a 12-month forward dividend yield of 1.70%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Air Liquide SA's annual dividend growth rate was 6.30%. Extended to a five-year horizon, this rate decreased to 6.10% per year. And over the past decade, Air Liquide SA's annual dividends per share growth rate stands at 5.70%. Based on Air Liquide SA's dividend yield and five-year growth rate, the 5-year yield on cost of Air Liquide SA stock as of today is approximately 2.15%.
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 December 31, 2023, Air Liquide SA's dividend payout ratio is 0.45. Air Liquide SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Air Liquide SA's profitability 9 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. Air Liquide SA's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Air Liquide SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Air Liquide SA's revenue has increased by approximately 10.30% per year on average, a rate that outperforms approximately 58.14% 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, Air Liquide SA's earnings increased by approximately 10.50% per year on average, a rate that outperforms approximately 56.1% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 9.10%, which outperforms approximately 54.26% of global competitors.
Conclusion: Air Liquide SA's Dividend Outlook
Considering Air Liquide SA's consistent dividend payments, robust growth metrics, and strong profitability, the company presents a compelling case for investors seeking stable dividend income. The strategic initiatives and industry position further enhance its attractiveness as a dividend-paying stock. How might these factors influence your investment strategy? 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.
