Insights into Lazard Ltd's Dividend History, Yield, and Growth
Lazard Ltd(LAZ, Financial) recently announced a dividend of $0.5 per share, payable on 2023-11-17, with the ex-dividend date set for 2023-11-03. 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 delve into Lazard Ltd's dividend performance and assess its sustainability.
What Does Lazard Ltd Do?
Lazard Ltd, with a history tracing back to 1848, splits its revenue nearly equally between financial advisory and asset management. The firm's asset management business, primarily equities, has an international focus and is geared towards institutional clients. Geographically, Lazard earns approximately 60% of revenue in the Americas, 35% in EMEA, and 5% in Asia-Pacific. With offices in over 40 cities across more than 25 countries, Lazard employs over 3,000 people.
A Glimpse at Lazard Ltd's Dividend History
Since 2005, Lazard Ltd has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. The company has increased its dividend each year since 2005, earning it the status of a dividend achiever, a title given to companies that have increased their dividend each year for at least the past 18 years.
Breaking Down Lazard Ltd's Dividend Yield and Growth
As of today, Lazard Ltd currently has a 12-month trailing dividend yield of 7.10% and a 12-month forward dividend yield of 7.10%, suggesting an expectation of consistent dividend payments over the next 12 months.
Over the past three years, Lazard Ltd's annual dividend growth rate was 1.60%. Extended to a five-year horizon, this rate increased to 3.50% per year. Over the past decade, Lazard Ltd's annual dividends per share growth rate stands at 9.10%.
Based on Lazard Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Lazard Ltd stock as of today is approximately 8.43%.
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 2023-09-30, Lazard Ltd's dividend payout ratio is 0.00.
Lazard Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Lazard Ltd's profitability 8 out of 10 as of 2023-09-30, 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
Lazard Ltd's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors. Lazard Ltd's revenue has increased by approximately 7.00% per year on average, a rate that underperforms approximately 50.07% 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, Lazard Ltd's earnings increased by approximately 11.00% per year on average, a rate that underperforms approximately 51.78% of global competitors.
The company's 5-year EBITDA growth rate of 11.20%, underperforms approximately 51.66% of global competitors.
Conclusion
In conclusion, Lazard Ltd's consistent dividend payment history, high dividend yield, and robust growth metrics make it an attractive investment for dividend-focused investors. Despite a payout ratio of 0.00, the company's profitability rank and positive net income suggest a high potential for sustainable dividends. However, investors should also consider the company's relative performance in terms of revenue and earnings growth. 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.
