Understanding Airbus SE's Upcoming Dividend and Its Sustainability
Airbus SE (EADSY, Financial) recently announced a dividend of $0.49 per share, payable on 2024-06-03, with the ex-dividend date set for 2024-04-16. 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 Airbus SE's dividend performance and assess its sustainability.
What Does Airbus SE Do?
Airbus SE is a major aerospace and defense firm. It designs, develops, and manufactures commercial and military aircraft, as well as space launch vehicles and satellites. The company operates three divisions: commercial, defense and space, and helicopters. Commercial offers aircraft ranging from narrow-body (120-200 seats) A220 and A320 series to much larger A330 and A350 wide body models. The defense and space segment supplies governments with military hardware, including transport aircraft, aerial tankers, and fighter aircraft (Eurofighter). The helicopter division manufactures turbine helicopters for the civil and public markets.
A Glimpse at Airbus SE's Dividend History
Airbus SE has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Airbus SE's Dividend Yield and Growth
As of today, Airbus SE currently has a 12-month trailing dividend yield of 1.15% and a 12-month forward dividend yield of 1.13%. This suggests an expectation of decreased dividend payments over the next 12 months.
Based on Airbus SE's dividend yield and five-year growth rate, the 5-year yield on cost of Airbus SE stock as of today is approximately 1.15%.
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, Airbus SE's dividend payout ratio is 0.37.
Airbus SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Airbus SE's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Airbus SE's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Airbus SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Airbus SE's revenue has increased by approximately 9.10% per year on average, a rate that outperforms approximately 60.79% of global competitors.
Next Steps
In conclusion, Airbus SE's upcoming dividend, consistent with its historical payouts, offers investors a tangible return on their investment. However, the slight decrease in forward dividend yield warrants attention to future dividend actions. The company's prudent payout ratio and fair profitability rank indicate a balance between rewarding shareholders and retaining earnings for growth. Airbus SE's growth metrics, characterized by steady revenue increases, underpin the potential for continued dividend sustainability. For value investors seeking to expand their portfolio with dividend-paying stocks, Airbus SE presents a case worth considering. 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.
