Understanding the Dividend Performance and Sustainability of Industria De Diseno Textil SA
Industria De Diseno Textil SA (IDEXY, Financial) recently announced a dividend of $0.32 per share, payable on 2023-11-17, with the ex-dividend date set for 2023-10-31. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Industria De Diseno Textil SA's dividend performance and evaluate its sustainability.
What Does Industria De Diseno Textil SA Do?
Industria De Diseno Textil SA, also known as Inditex, is a multibrand fashion conglomerate established in 1985. Its flagship brand, Zara, accounts for over 70% of revenue and 75% of profits. Other brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Uterque. The company operates through more than 5,800 stores globally, with over 1,800 belonging to the Zara brand. The majority of revenue is generated in the European home market, with the Americas and Asia contributing 20% and 14%, respectively.
A Glimpse at Industria De Diseno Textil SA's Dividend History
Industria De Diseno Textil SA has maintained a consistent dividend payment record since 2009, currently distributing dividends on a bi-annual basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Breaking Down Industria De Diseno Textil SA's Dividend Yield and Growth
As of today, Industria De Diseno Textil SA boasts a 12-month trailing dividend yield of 3.28% and a 12-month forward dividend yield of 3.80%. This suggests an expectation of increased dividend payments over the next 12 months.
Industria De Diseno Textil SA's dividend yield of 3.28% is near a 10-year high and outperforms about 40.67% of global competitors in the Retail - Cyclical industry, suggesting that the company's dividend yield is an attractive proposition for income investors.
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 2023-07-31, Industria De Diseno Textil SA's dividend payout ratio is 0.68.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Industria De Diseno Textil SA's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
In conclusion, Industria De Diseno Textil SA's consistent dividend payments, positive growth rate, low payout ratio, high profitability, and strong growth metrics all indicate a sustainable dividend. However, investors should continue to monitor these factors to ensure the continued viability of the company's dividends.
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.
