Banco BPM SpA's Dividend Analysis
Delving into the Dividend Dynamics of Banco BPM SpA
Banco BPM SpA (BNCZF) recently announced a dividend of $0.56 per share, payable on 2024-04-24, 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 BPM SpA's dividend performance and assess its sustainability.
What Does Banco BPM SpA Do?
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Banco BPM SpA is a financial services provider. It offers services including retail banking, corporate banking, and private and investment banking/asset management.
A Glimpse at Banco BPM SpA's Dividend History
Banco BPM SpA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Banco BPM SpA's Dividend Yield and Growth
As of today, Banco BPM SpA currently has a 12-month trailing dividend yield of 4.53% and a 12-month forward dividend yield of 10.83%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Banco BPM SpA's dividend yield and five-year growth rate, the 5-year yield on cost of Banco BPM SpA stock as of today is approximately 4.53%.
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, Banco BPM SpA's dividend payout ratio is 0.25.
Banco BPM SpA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Banco BPM SpA's profitability 4 out of 10 as of 2023-12-31, suggesting the dividend may not be sustainable. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Banco BPM SpA's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Banco BPM SpA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Banco BPM SpA's revenue has increased by approximately 11.90% per year on average, a rate that outperforms approximately 68.75% 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, Banco BPM SpA's earnings increased by approximately 172.20% per year on average, a rate that outperforms approximately 98.53% of global competitors.
Looking Ahead: Banco BPM SpA's Dividend Prospects
In conclusion, Banco BPM SpA's upcoming dividend payment, historical consistency, and current yield figures are of significant interest to investors. However, the sustainability of these dividends is a complex interplay of factors including the payout ratio, profitability, and growth metrics. While the payout ratio and profitability rank may raise concerns, the strong revenue and earnings growth rates provide a counterbalance, suggesting potential for sustained or even increased dividends. Investors should weigh these factors carefully and consider the company's future outlook in their investment decisions. For those seeking additional high-dividend opportunities, 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.
This article first appeared on GuruFocus.