Exploring the Sustainability and Growth of Anheuser-Busch InBev SA/NV's Dividends
Anheuser-Busch InBev SA/NV (BUD, Financial) recently announced a dividend of $0.87 per share, payable on June 7, 2024, with the ex-dividend date set for May 3, 2024. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will assess the sustainability and potential growth of Anheuser-Busch InBev SA/NV's dividends.
What Does Anheuser-Busch InBev SA/NV Do?
Anheuser-Busch InBev is the world's largest brewer and ranks among the top five consumer product companies globally in terms of EBITDA. The company boasts a portfolio that includes six of the top 10 beer brands by volume and distributes 23 brands that each generate over $1 billion in retail sales. Formed from the 2008 merger of InBev and Anheuser-Busch, the company also holds a 62% economic interest in Ambev and acquired SABMiller in 2016.
A Glimpse at Anheuser-Busch InBev SA/NV's Dividend History
Since 2010, Anheuser-Busch InBev SA/NV has maintained a consistent dividend payment schedule, currently distributing dividends annually. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Anheuser-Busch InBev SA/NV's Dividend Yield and Growth
Anheuser-Busch InBev SA/NV currently sports a 12-month trailing dividend yield of 1.37% and a forward dividend yield of 1.46%, indicating expected increases in dividend payments over the next year. Over the past three years, the annual dividend growth rate was 13.20%, though it decreased to -26.60% over a five-year period and -19.60% over the past decade. The 5-year yield on cost for Anheuser-Busch InBev SA/NV stock is approximately 0.29% as of today.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of the dividends, it's essential to consider the dividend payout ratio, which currently stands at 0.27. This low ratio suggests that Anheuser-Busch InBev SA/NV retains a substantial portion of its earnings, providing a buffer for future growth and potential economic downturns. Additionally, the company's profitability rank of 7 out of 10, combined with a consistent record of positive net income, underscores its robust profitability.
Growth Metrics: The Future Outlook
Anheuser-Busch InBev SA/NV's growth metrics are promising, with a growth rank of 7 out of 10. The company's revenue per share and 3-year revenue growth rate of 7.90% per year indicate a solid revenue model, though it underperforms 53.69% of global competitors. The 3-year EPS growth rate of 33.90% and a 5-year EBITDA growth rate of 6.70% further highlight the company's potential for sustaining dividends.
Conclusion
Considering Anheuser-Busch InBev SA/NV's consistent dividend payments, growth in dividend rates, and robust payout ratio and profitability metrics, the company appears well-positioned to maintain its dividend payouts. However, investors should keep an eye on the company's long-term growth metrics and market conditions that could impact future dividends. For those interested in exploring further, GuruFocus Premium offers tools like the High Dividend Yield Screener to discover high-dividend yield stocks.
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.
