Assessing the Upcoming Dividend and Financial Health of Berkeley Group Holdings (The) PLC
Berkeley Group Holdings (The) PLC (BKGFY, Financial) recently announced a dividend of $0.08 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-03-08. 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 Berkeley Group Holdings (The) PLC's dividend performance and assess its sustainability.
What Does Berkeley Group Holdings (The) PLC Do?
Berkeley Group Holdings is a U.K. homebuilder specializing in large-scale residential-led brownfield redevelopment projects with a particular focus on the London, Birmingham, and south of England housing markets. The group is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain.
A Glimpse at Berkeley Group Holdings (The) PLC's Dividend History
Berkeley Group Holdings (The) PLC has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Berkeley Group Holdings (The) PLC's Dividend Yield and Growth
As of today, Berkeley Group Holdings (The) PLC currently has a 12-month trailing dividend yield of 2.62% and a 12-month forward dividend yield of 1.93%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Berkeley Group Holdings (The) PLC's annual dividend growth rate was -8.80%. Based on Berkeley Group Holdings (The) PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Berkeley Group Holdings (The) PLC stock as of today is approximately 2.62%.
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 2023-10-31, Berkeley Group Holdings (The) PLC's dividend payout ratio is 0.31.
Berkeley Group Holdings (The) PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Berkeley Group Holdings (The) PLC's profitability 8 out of 10 as of 2023-10-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. Berkeley Group Holdings (The) PLC's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Berkeley Group Holdings (The) PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Berkeley Group Holdings (The) PLC's revenue has increased by approximately 16.40% per year on average, a rate that outperforms approximately 72.28% 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, Berkeley Group Holdings (The) PLC's earnings increased by approximately 10.50% per year on average, a rate that outperforms approximately 44.71% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -5.20%, which outperforms approximately 20.59% of global competitors, is also noteworthy.
Concluding Thoughts on Berkeley Group Holdings (The) PLC's Dividends
In conclusion, Berkeley Group Holdings (The) PLC's upcoming dividend, while modest, is backed by a history of consistent payments. The dividend growth rate, payout ratio, and profitability rank paint a picture of a company with a strategic approach to shareholder returns. However, the expected decrease in dividend payments may warrant attention from investors. With solid growth metrics in place, Berkeley Group Holdings (The) PLC appears to be positioning itself for sustained success, which could, in turn, support future dividend stability or growth. Investors seeking high-dividend yield opportunities may find value in monitoring Berkeley Group Holdings (The) PLC's financial health and industry trends closely. For those interested in further research, 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.
