An In-depth Look at the Upcoming Dividend and Historical Performance
Introduction to Veolia Environnement SA's Dividend Announcement
Veolia Environnement SA (VEOEY, Financial) recently announced a dividend of $0.66 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-06. 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 Veolia Environnement SA's dividend performance and assess its sustainability.
What Does Veolia Environnement SA Do?
Veolia Environnement SA is the largest water company globally and a leading player in France. It is also involved in waste management with significant exposure to France, the United Kingdom, Germany, the United States, and Australia. The third pillar of the group is energy services, giving the group significant exposure to Central Europe. Veolia started to refocus its activities in 2011, leading to the exit of almost half of its countries and its transport activity The integration of most activities of the historical rival Suez in 2022 drove an EBITDA increase of nearly 40%.
A Glimpse at Veolia Environnement SA's Dividend History
Veolia Environnement SA has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a yearly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Veolia Environnement SA's Dividend Yield and Growth
As of today, Veolia Environnement SA currently has a 12-month trailing dividend yield of 3.85% and a 12-month forward dividend yield of 4.18%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Veolia Environnement SA's annual dividend growth rate was 32.50%. Extended to a five-year horizon, this rate decreased to 6.80% per year. And over the past decade, Veolia Environnement SA's annual dividends per share growth rate stands at 3.20%.
Based on Veolia Environnement SA's dividend yield and five-year growth rate, the 5-year yield on cost of Veolia Environnement SA stock as of today is approximately 5.35%.
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, Veolia Environnement SA's dividend payout ratio is 0.70, which may suggest that the company's dividend may not be sustainable.
Veolia Environnement SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Veolia Environnement SA's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. Veolia Environnement SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Veolia Environnement SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Veolia Environnement SA's revenue has increased by approximately 12.80% per year on average, a rate that outperforms approximately 64.59% 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, Veolia Environnement SA's earnings increased by approximately 2.10% per year on average, a rate that outperforms approximately 48.31% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.00%, which outperforms approximately 40.35% of global competitors.
Conclusion and Next Steps
Considering Veolia Environnement SA's consistent dividend payments, robust growth metrics, and a solid profitability rank, the company presents an appealing case for investors seeking stable dividend income. However, the sustainability of its dividends, given the payout ratio, warrants careful monitoring. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks 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.
