Scrutinizing the Upcoming Dividend and Historical Performance of Vinci SA
Vinci SA (VCISY, Financial) recently announced a dividend of $0.93 per share, payable on 2024-05-10, with the ex-dividend date set for 2024-04-19. 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 Vinci SA's dividend performance and assess its sustainability.
What Does Vinci SA Do?
Vinci SA is one of the world's largest investors in transport infrastructure. Significant concession assets include 4,400 kilometers of toll roads in France and 72 airports across 13 countries, making Vinci SA the world's largest airport operator in terms of managed passenger numbers. The concession's business contributes less than one fifth of group revenue but the majority of operating profit. Vinci SA's contracting business provides a broad variety of engineering and construction services.
A Glimpse at Vinci SA's Dividend History
Vinci SA has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Vinci SA's Dividend Yield and Growth
As of today, Vinci SA currently has a 12-month trailing dividend yield of 3.73% and a 12-month forward dividend yield of 4.05%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Vinci SA's annual dividend growth rate was 48.00%. Extended to a five-year horizon, this rate decreased to 11.20% per year. And over the past decade, Vinci SA's annual dividends per share growth rate stands at 6.80%.
Based on Vinci SA's dividend yield and five-year growth rate, the 5-year yield on cost of Vinci SA stock as of today is approximately 6.34%.
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 2023-12-31, Vinci SA's dividend payout ratio is 0.50.
Vinci SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Vinci SA's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Vinci SA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Vinci SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Vinci SA's revenue has increased by approximately 15.80% per year on average, a rate that outperforms approximately 77.49% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Vinci SA's earnings increased by approximately 55.20% per year on average, a rate that outperforms approximately 87.83% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 11.20%, which outperforms approximately 63.47% of global competitors.
Next Steps
In conclusion, Vinci SA's upcoming dividend, historical dividend growth, stable payout ratio, and strong profitability and growth metrics paint a favorable picture for value investors. The company's ability to maintain and grow its dividends is underpinned by its robust financial health and market position. As investors consider Vinci SA for their portfolios, they should weigh these factors to determine if the stock aligns with their investment goals and risk tolerance. Will Vinci SA continue to provide a reliable income stream through dividends in the years to come? GuruFocus Premium users can explore this 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.
