Assessing the Upcoming Dividend Payment and Its Sustainability
Banco Santander (Brasil) SA (BSBR, Financial) recently announced a dividend of $0.08 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-04-22. 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 Banco Santander (Brasil) SA's dividend performance and assess its sustainability.
What Does Banco Santander (Brasil) SA Do?
Banco Santander (Brasil) SA is part of the Santander Group, a Spanish banking conglomerate. The company operates primarily through two segments: the Commercial Banking segment, which serves individual and corporate clients, and the Global Wholesale Banking segment, which covers Investment Banking and Markets operations, including Treasury and Equity Business Departments. The majority of Banco Santander (Brasil) SA's revenue is derived from the Commercial Banking segment, with operations both in Brazil and internationally.
A Glimpse at Banco Santander (Brasil) SA's Dividend History
Banco Santander (Brasil) SA has established a consistent record of dividend payments since 2009, with dividends currently distributed on a quarterly basis. Below is a chart that illustrates the annual Dividends Per Share to track historical trends.
Breaking Down Banco Santander (Brasil) SA's Dividend Yield and Growth
As of today, Banco Santander (Brasil) SA boasts a trailing 12-month dividend yield of 6.22% and a 12-month forward dividend yield of 6.18%, indicating a slight expected decrease in dividend payments over the next year.
Over the past three years, Banco Santander (Brasil) SA's annual dividend growth rate was -17.60%. However, when extended to a five-year horizon, this rate shows a minimal decrease to -0.70% per year. Over the past decade, the annual dividends per share growth rate has been an impressive 18.10%.
Considering Banco Santander (Brasil) SA's dividend yield and five-year growth rate, the 5-year yield on cost for the stock as of today is approximately 6.01%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one must examine the company's payout ratio. Banco Santander (Brasil) SA's dividend payout ratio is 5.15 as of 2023-12-31, which may cast doubt on the sustainability of the company's dividends.
Banco Santander (Brasil) SA's profitability rank is 5 out of 10, indicating fair profitability. The company's consistent positive net income over the past decade underscores its solid profitability.
Growth Metrics: The Future Outlook
Banco Santander (Brasil) SA's growth rank of 5 suggests a fair growth outlook. The company's revenue per share and its average 7.10% per year 3-year revenue growth rate outperform approximately 51.1% of global competitors.
Banco Santander (Brasil) SA's 3-year EPS growth rate has averaged a remarkable 790.70% per year, outperforming approximately 99.92% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 454.30% outperforms approximately 99.91% of global competitors, indicating strong potential for sustained dividend payments.
Next Steps
In conclusion, Banco Santander (Brasil) SA's upcoming dividend, consistent dividend history, and impressive long-term growth rate in dividends per share provide an attractive proposition for investors. However, the recent negative dividend growth rates and the low payout ratio may raise questions about the sustainability of future dividends. The company's fair profitability and growth metrics, combined with its strong revenue and earnings growth, suggest that it is well-positioned to maintain its dividend payments. Investors should continue to monitor these factors to ensure that the dividends remain a reliable source of income. For those seeking high-dividend yield opportunities, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment options.
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.
