Assessing the Sustainability and Growth of Securitas AB's Dividends
Securitas AB (SCTBF, Financial) recently announced a dividend of $1.75 per share, payable on 2023-11-23, with the ex-dividend date set for 2023-11-17. 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 Securitas AB's dividend performance and assess its sustainability.
What Does Securitas AB Do?
Securitas is an international security services, consulting, and investigation group based in Stockholm, Sweden. Its primary activities are centered on manned security, mobile security, monitoring, and risk assessment. Securitas operates in more than 50 countries and is the second-largest security firm in the world and the largest in manned guarding.
A Glimpse at Securitas AB's Dividend History
Securitas AB has upheld a consistent dividend payment record since 2009, with dividends currently distributed on a bi-annual basis. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Securitas AB's Dividend Yield and Growth
As of today, Securitas AB's trailing 12-month dividend yield stands at 2.10%, with the forward dividend yield projected at 4.13%, indicating an expected increase in dividend payments over the next 12 months. This growth extends to a five-year horizon, with an increase to 2.60% per year, and a decade-long annual dividends per share growth rate of 5.00%.
Considering Securitas AB's dividend yield and five-year growth rate, the 5-year yield on cost for the company's stock is approximately 2.39% as of today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical metric for evaluating dividend sustainability, and as of 2023-09-30, Securitas AB's ratio is 0.67. This lower ratio implies that the company retains a substantial part of its earnings, which supports future growth and buffers against downturns.
Securitas AB's profitability rank is 8 out of 10, indicating good profitability relative to its peers. The company has also reported consistent positive net income annually over the past decade.
Growth Metrics: The Future Outlook
Securitas AB's growth rank of 8 out of 10 signals a strong growth trajectory. The company's revenue per share and 3-year revenue growth rate demonstrate a solid revenue model, with a 4.00% average annual increase.
Securitas AB's 3-year EPS growth rate of 10.50% per year and a 5-year EBITDA growth rate of 8.00% are indicators of its ability to sustain dividends over the long term.
Next Steps
In conclusion, Securitas AB's dividend payments, growth rate, payout ratio, profitability, and growth metrics present a robust picture for value investors. The company's consistent dividend history, coupled with a sound financial strategy, positions it as a potentially stable income-generating investment. Investors should consider these factors alongside industry trends, regulatory environments, and strategic initiatives to make informed decisions.
For those seeking high-dividend yield stocks, GuruFocus Premium users can leverage 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.
