Assessing the Dividend Profile of Koninklijke KPN NV
Koninklijke KPN NV (KKPNY, Financial) recently announced a dividend of $0.11 per share, payable on 2024-05-02, 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 Koninklijke KPN NV's dividend performance and assess its sustainability.
What Does Koninklijke KPN NV Do?
Koninklijke KPN NV (KKPNY, Financial) is the incumbent telecom operator in the Netherlands. It boasts a significant market presence with close to 40% share of the broadband market and 20% of the postpaid mobile market, primarily contending with VodafoneZiggo (mobile and fixed) and Odido (mainly mobile). The company is actively rolling out fiber to the home across the Netherlands and aims to achieve extensive coverage by 2026.
A Glimpse at Koninklijke KPN NV's Dividend History
Koninklijke KPN NV has upheld a consistent dividend payment track record since 2014, with distributions occurring bi-annually. To provide a clearer picture of the company's dividend reliability, below is a chart illustrating the annual Dividends Per Share for historical trend analysis.
Breaking Down Koninklijke KPN NV's Dividend Yield and Growth
Koninklijke KPN NV currently presents a 12-month trailing dividend yield of 4.56% and a 12-month forward dividend yield of 4.61%. This indicates an anticipated increase in dividend payments over the next year.
In the past three years, Koninklijke KPN NV's annual dividend growth rate has been 5.30%, which slightly dips to 5.10% when extended over a five-year span. Consequently, the 5-year yield on cost for Koninklijke KPN NV stock is roughly 5.85% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Koninklijke KPN NV's dividends can be gauged by examining the dividend payout ratio, which currently stands at 0.68. This ratio indicates the percentage of earnings allocated to dividends, with a lower ratio signifying a greater capacity for the company to reinvest in growth and weather economic fluctuations.
Additionally, Koninklijke KPN NV's profitability rank is 7 out of 10, denoting a strong ability to generate earnings compared to its peers. The company's consistent profitability, with net profit reported in 9 of the past 10 years, fortifies the foundation for ongoing dividend payments.
Growth Metrics: The Future Outlook
Future dividend sustainability is also contingent on robust growth metrics. Koninklijke KPN NV's growth rank is an encouraging 7 out of 10, indicating solid growth potential relative to competitors.
With revenue being a critical indicator of a company's health, Koninklijke KPN NV's revenue per share and 3-year revenue growth rate reflect a strong revenue model, albeit with a 2.80% average yearly increase that underperforms approximately 57.61% of global competitors.
The company's 3-year EPS growth rate is a further testament to its earnings growth capabilities, outpacing roughly 64.61% of global competitors with an average annual increase of 16.20%.
Lastly, Koninklijke KPN NV's 5-year EBITDA growth rate of 23.50% signals strong earnings before interest, taxes, depreciation, and amortization, surpassing approximately 77.36% of global competitors.
Concluding Thoughts on Koninklijke KPN NV's Dividend Prospects
Koninklijke KPN NV's dividend payments, growth rate, and payout ratio exhibit a stable and promising outlook for value investors. The company's solid profitability and growth metrics further reinforce the potential for sustained dividend yields. As investors continue to seek out high-dividend opportunities, it is essential to consider the comprehensive financial health and growth prospects of a company. Koninklijke KPN NV, with its consistent dividend history and promising financial indicators, could be a noteworthy consideration for those looking to bolster their income-generating portfolio.
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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.
