An In-Depth Look at Heineken Holding NV's Upcoming Dividend Payment
Heineken Holding NV (HKHHY, Financial) recently announced a dividend of $0.56 per share, payable on 2024-05-14, with the ex-dividend date set for 2024-04-29. 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 Heineken Holding NV's dividend performance and assess its sustainability.
What Does Heineken Holding NV Do?
Heineken Holding NV holds more than 50% of Heineken NV's issued shares. It does not engage in operational activities and generates income almost exclusively by receiving Heineken dividends. Heineken Holding NV has five segments: Europe, Americas, Africa, Middle East & Eastern Europe, and Asia-Pacific. Heineken NV brews and sells more than 200 brands of beer in nearly 200 countries. Notable brands include Heineken, Amstel, Dos Equis, Tecate, Goldberg, Red Stripe, Legunitas, and Tiger. Close to half of Heineken NV's revenue comes from Europe, and nearly one third of its revenue comes from the Americas. The remaining revenue is split among the Asia-Pacific, Africa, and Middle East and Eastern Europe regions.
A Glimpse at Heineken Holding NV's Dividend History
Heineken Holding NV has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Heineken Holding NV's Dividend Yield and Growth
As of today, Heineken Holding NV currently has a 12-month trailing dividend yield of 2.57% and a 12-month forward dividend yield of 2.28%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Heineken Holding NV's annual dividend growth rate was 22.70%. Extended to a five-year horizon, this rate decreased to 2.10% per year. And over the past decade, Heineken Holding NV's annual dividends per share growth rate stands at 4.40%.
Based on Heineken Holding NV's dividend yield and five-year growth rate, the 5-year yield on cost of Heineken Holding NV stock as of today is approximately 2.85%.
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, Heineken Holding NV's dividend payout ratio is 0.46.
Heineken Holding NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Heineken Holding NV's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 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. Heineken Holding NV's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Heineken Holding NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Heineken Holding NV's revenue has increased by approximately 16.00% per year on average, a rate that outperforms approximately 78.33% of global competitors.
Next Steps
In conclusion, Heineken Holding NV's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics paint a picture of a company with a strong commitment to returning value to shareholders. The consistent dividend history, coupled with a reasonable payout ratio and solid profitability, suggests that dividend payments are sustainable in the near term. The robust growth metrics indicate potential for continued expansion, which could further bolster the company's ability to maintain or increase dividend payments. Investors considering adding Heineken Holding NV to their portfolios should weigh these factors carefully, alongside their investment strategy and market outlook. For those seeking high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener for potential opportunities.
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.
