Insights into Accenture PLC's Upcoming Dividend and Financial Health
Accenture PLC (ACN, Financial) recently announced a dividend of $1.29 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-04-10. 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 Accenture PLC's dividend performance and assess its sustainability.
What Does Accenture PLC Do?
Accenture is a leading global IT-services firm that provides consulting, strategy, and technology and operational services. These services run the gamut from aiding enterprises with digital transformation to procurement services to software system integration. The company provides its IT offerings to a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture employs just under 500,000 people throughout 200 cities in 51 countries.
A Glimpse at Accenture PLC's Dividend History
Accenture PLC has maintained a consistent dividend payment record since 2005, with dividends distributed on a quarterly basis. Accenture PLC has increased its dividend each year since 2011, earning its status as a dividend achiever—a title awarded to companies that have increased their dividend annually for at least the past 13 years. Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down Accenture PLC's Dividend Yield and Growth
As of today, Accenture PLC currently has a 12-month trailing dividend yield of 1.46% and a 12-month forward dividend yield of 1.56%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Accenture PLC's annual dividend growth rate was 11.90%. When extended to a five-year horizon, this rate decreased to 10.70% per year. And over the past decade, Accenture PLC's annual dividends per share growth rate stands at an impressive 10.10%.
Based on Accenture PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Accenture PLC stock as of today is approximately 2.43%.
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 2024-02-29, Accenture PLC's dividend payout ratio is 0.40.
Accenture PLC's profitability rank of 10 out of 10 as of 2024-02-29, suggests 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
Ensuring the sustainability of dividends requires robust growth metrics. Accenture PLC's growth rank of 10 out of 10 suggests that the company's growth trajectory is favorable relative to its competitors. Accenture PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model, with an average annual increase of approximately 13.60%, outperforming about 62.25% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, critical for sustaining dividends in the long run, with an average annual increase of approximately 16.10%, outperforming about 58.9% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 13.30%, outperforms about 53.39% of global competitors.
Engaging Conclusion
Accenture PLC's consistent dividend payments, robust dividend growth rate, prudent payout ratio, and strong profitability and growth metrics paint a picture of a financially healthy company committed to rewarding its shareholders. As investors consider the upcoming dividend and the company's financial health, they may find reassurance in Accenture PLC's ability to maintain and potentially increase its dividends in the future. With a blend of steady performance and strategic growth, Accenture PLC remains an attractive consideration for dividend-seeking investors.
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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.
