Exploring the Dividend Future for Bank Hapoalim BM Investors
Bank Hapoalim BM (BKHYY, Financial) recently announced a dividend of $0.36 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-03-20. 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 Bank Hapoalim BM's dividend performance and assess its sustainability.
Understanding Bank Hapoalim BM's Business Model
Bank Hapoalim BM is an Israeli bank that operates hundreds of full-service retail branches focusing on households, small businesses, and private banking to high-net-worth individuals. The bank offers a range of banking and payments products, capital market and foreign trade facilities, and a full gamut of financial planning advisory services, including pension and retirement planning. Its private banking division offers wealth management services and has a global presence. Most of its net revenue is derived from net interest income in the corporate and household segments. The bank's strategy emphasizes its competitive positioning in Israel, diversification of revenue sources, operational efficiency, and financial technology.
Bank Hapoalim BM's Dividend Track Record
Bank Hapoalim BM has maintained a consistent dividend payment record since 2013, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Assessing Bank Hapoalim BM's Dividend Yield and Growth
As of today, Bank Hapoalim BM currently has a 12-month trailing dividend yield of 5.40% and a 12-month forward dividend yield of 5.00%. This suggests an expectation of decreased dividend payments over the next 12 months. Moreover, based on Bank Hapoalim BM's dividend yield and five-year growth rate, the 5-year yield on cost of Bank Hapoalim BM stock as of today is approximately 5.40%.
Evaluating the Sustainability of Bank Hapoalim BM's Dividend
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. As of 2023-12-31, Bank Hapoalim BM's dividend payout ratio is 0.33, indicating a balance between retaining earnings for growth and rewarding shareholders.
Bank Hapoalim BM's profitability rank of 5 out of 10, as of 2023-12-31, suggests fair profitability. The company has consistently reported positive net income for each year over the past decade, reinforcing its financial strength.
Bank Hapoalim BM's Growth Metrics and Future Outlook
Bank Hapoalim BM's growth rank of 5 out of 10 indicates a fair growth outlook. Its revenue per share and 3-year revenue growth rate suggest a strong revenue model, with an average annual increase of approximately 17.50%, outperforming about 83.88% of global competitors.
The company's 3-year EPS growth rate demonstrates its capability to grow earnings, vital for sustaining dividends, with an average annual increase of approximately 51.00%, outperforming about 91.36% of global competitors. Additionally, Bank Hapoalim BM's 5-year EBITDA growth rate of 37.70% surpasses approximately 94.94% of global competitors.
Conclusion: Bank Hapoalim BM's Dividend Prospects
In conclusion, Bank Hapoalim BM's consistent dividend history, reasonable payout ratio, and solid growth metrics present an attractive profile for value investors. The bank's strategic balance between rewarding shareholders and reinvesting in its operations bodes well for its ability to maintain dividend payments. Investors should consider these factors in the context of their investment strategies and objectives. For those seeking high-dividend yield opportunities, GuruFocus Premium users can explore further 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.
