Exploring the Sustainability and Growth of Wolters Kluwer NV's Dividends
Wolters Kluwer NV (WTKWY, Financial) recently announced a dividend of $1.45 per share, payable on 2024-06-11, with the ex-dividend date set for 2024-05-10. 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 Wolters Kluwer NV's dividend performance and assess its sustainability.
What Does Wolters Kluwer NV Do?
Wolters Kluwer is a global provider of professional information, software solutions, and services in health; tax and accounting; environmental, social, and governance; finance; compliance; and legal sectors. More than 60% of revenue is generated in North America and around 30% is from Europe.
A Glimpse at Wolters Kluwer NV's Dividend History
Wolters Kluwer NV has maintained a consistent dividend payment record since 2003, distributing dividends bi-annually. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Wolters Kluwer NV's Dividend Yield and Growth
Wolters Kluwer NV currently has a 12-month trailing dividend yield of 1.27% and a 12-month forward dividend yield of 1.39%, indicating an expected increase in dividend payments over the next 12 months. Despite this, Wolters Kluwer NV's dividend yield is near a 10-year low and underperforms 81.94% of global competitors in the Business Services industry.
Over the past three years, Wolters Kluwer NV's annual dividend growth rate was 14.70%, extending to 14.80% per year over five years, and achieving a decade-long growth rate of 10.70%. The 5-year yield on cost of Wolters Kluwer NV stock is approximately 2.53%.
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 of 0.43 suggests that Wolters Kluwer NV retains a significant part of its earnings, ensuring funds for future growth and downturns. The company's profitability rank of 9 out of 10, combined with a decade of positive net income, supports its high profitability.
Growth Metrics: The Future Outlook
Wolters Kluwer NV's robust growth rank of 9 out of 10 underscores its strong growth trajectory. The company's revenue and earnings growth rates, along with a 5-year EBITDA growth rate of 11.30%, outperform a significant portion of global competitors, indicating a solid foundation for sustained dividend payments.
Conclusion
Considering Wolters Kluwer NV's consistent dividend payments, robust growth rates, and strong payout ratio, the company appears well-positioned to maintain its dividend distributions. Investors seeking high-dividend yield opportunities can explore more using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
