An In-depth Look at Upcoming Dividends and Historical Performance
Deutsche Bank AG (DB, Financial) recently announced a dividend of $0.45 per share, set to be paid on 2024-05-21, with the ex-dividend date on 2024-05-17. As the payment date approaches, investors are keenly observing the bank's dividend history, yield, and growth rates. This analysis uses comprehensive data from GuruFocus to delve into the sustainability and performance of Deutsche Bank AG's dividends.
What Does Deutsche Bank AG Do?
Deutsche Bank operates as a universal bank with a global presence, providing a wide range of financial services. These include corporate, retail, and investment banking, along with private banking and asset management solutions to its diverse clientele.
A Glimpse at Deutsche Bank AG's Dividend History
Deutsche Bank AG has upheld a steady dividend payment track record since 2022, distributing dividends annually. Below is a visual representation of the annual Dividends Per Share to illustrate historical trends.
Breaking Down Deutsche Bank AG's Dividend Yield and Growth
Currently, Deutsche Bank AG boasts a 12-month trailing dividend yield of 1.88% and a 12-month forward dividend yield of 2.82%, indicating anticipated growth in dividend payments over the next year.
As of today, the 5-year yield on cost for Deutsche Bank AG stock stands at approximately 1.88%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Deutsche Bank AG's dividends can be gauged by examining the dividend payout ratio, which currently stands at 0.09. This low ratio indicates that the bank retains a substantial portion of its earnings, which supports future growth and financial stability. Despite this, Deutsche Bank AG's profitability rank is 4 out of 10, suggesting potential challenges in maintaining dividend payments, given its profitability issues over the past decade.
Growth Metrics: The Future Outlook
For dividends to be sustainable, robust growth metrics are essential. Deutsche Bank AG's growth rank of 4 out of 10 indicates limited growth prospects. However, the bank's revenue per share and a 3-year revenue growth rate of approximately 10.40% annually surpasses 62.89% of global competitors. Additionally, its 3-year EPS growth rate of about 88.10% annually outperforms 95.85% of global peers, underscoring its earnings growth capability.
Next Steps
In conclusion, while Deutsche Bank AG faces challenges in profitability and growth, its low payout ratio and strong earnings growth provide some reassurance about the sustainability of its dividends. Investors should continue to monitor these metrics closely to make informed decisions. For those interested in exploring further, GuruFocus Premium offers tools like the High Dividend Yield Screener to discover high-yield investment 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.
