A Comprehensive Analysis of Colruyt NV's Dividend History, Yield, Growth, and Sustainability
Belgian-based food retailer, Colruyt NV (CUYTY, Financial), recently declared a dividend of $0.22 per share, scheduled for payment on 2023-10-18, with the ex-dividend date set for 2023-09-29. As investors anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using GuruFocus data, we delve into Colruyt NV's dividend performance and assess its sustainability.
Colruyt NV: A Brief Overview
Colruyt NV, formerly known as Etablissementen Franz Colruyt NV, is a family-owned food retailer that began operations in 1928. With nearly 30,000 employees and more than 530 stores across Belgium and France, the company generates 60% of its sales from its flagship Colruyt supermarkets. The remaining sales come from neighbourhood stores, biosupermarkets, covered markets, family and seasonal stores, food service, and wholesale businesses. Colruyt NV also owns DATS 24 filling stations and a green energy business that generates electricity from wind turbines, solar panels, and biomass.
Colruyt NV's Dividend History: A Snapshot
Since 2009, Colruyt NV has maintained a consistent dividend payment record, distributing dividends annually. The chart below, illustrating the annual Dividends Per Share, provides a historical perspective of the company's dividend trends.
Colruyt NV's Dividend Yield and Growth: An Analysis
As of today, Colruyt NV has a 12-month trailing dividend yield of 2.59% and a 12-month forward dividend yield of 2.05%. This indicates a projected decrease in dividend payments over the next 12 months.
Over the past three years, Colruyt NV's annual dividend growth rate was -5.70%. However, when viewed over a five-year period, this rate increased to 0.70% per year. Over the past decade, the company's annual dividends per share growth rate stands at 3.50%. Based on these metrics, the 5-year yield on cost of Colruyt NV stock as of today is approximately 2.68%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a company's dividend is often evaluated by its payout ratio. The dividend payout ratio indicates the proportion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-03-31, Colruyt NV's dividend payout ratio is 0.79, which may raise questions about the sustainability of its dividend.
Colruyt NV's profitability rank of 7 out of 10, as of 2023-03-31, indicates good profitability prospects. The company has reported positive net income each year over the past decade, further solidifying its high profitability.
Colruyt NV's Growth Metrics: A Future Outlook
For a company to sustain its dividends, robust growth metrics are essential. Colruyt NV's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors.
Colruyt NV's revenue per share and 3-year revenue growth rate indicate a strong revenue model. However, the company's 3-year EPS growth rate and 5-year EBITDA growth rate underperform relative to global competitors, which may impact its ability to sustain dividends in the long run.
Conclusion
In conclusion, while Colruyt NV has a consistent dividend payment record, its high payout ratio, and underperforming growth rates relative to its competitors raise concerns about the sustainability of its dividends. Therefore, investors should consider these factors when making investment decisions. For high-dividend yield stocks, consider using the High Dividend Yield Screener available for GuruFocus Premium users.
