Autoliv Inc's Dividend Analysis
Understanding Autoliv Inc's Upcoming Dividend in Light of Its Financial Health
Autoliv Inc (NYSE:ALV) recently announced a dividend of $0.68 per share, payable on 2024-03-27, with the ex-dividend date set for 2024-03-11. 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 Autoliv Inc's dividend performance and assess its sustainability.
What Does Autoliv Inc Do?
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Autoliv is the global leader in passive safety components and systems for the auto industry. Products include seat belts, frontal air bags, side-impact air bags, air bag inflators, and steering wheels. The Renault-Nissan-Mitsubishi alliance is the company's largest customer at 10% of 2023 revenue, with Stellantis accounting for 10% and Volkswagen 9%. At 34% of 2023 revenue, the Americas was Autoliv's largest geographic region, followed by Europe at 27%, China at 20%, and rest of world at 19%.
A Glimpse at Autoliv Inc's Dividend History
Autoliv Inc has maintained a consistent dividend payment record since 1997, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Autoliv Inc's Dividend Yield and Growth
As of today, Autoliv Inc currently has a 12-month trailing dividend yield of 2.27% and a 12-month forward dividend yield of 2.32%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Autoliv Inc's annual dividend growth rate was 62.50%. Extended to a five-year horizon, this rate decreased to 4.70% per year. And over the past decade, Autoliv Inc's annual dividends per share growth rate stands at -0.80%.
Based on Autoliv Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Autoliv Inc stock as of today is approximately 2.86%.
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. As of 2023-12-31, Autoliv Inc's dividend payout ratio is 0.32, suggesting a sustainable payout.
Autoliv Inc's profitability rank of 7 out of 10 as of 2023-12-31, indicates good profitability prospects, supported by a decade of positive net income.
Growth Metrics: The Future Outlook
Autoliv Inc's growth rank of 7 out of 10 suggests a solid growth trajectory. Its revenue per share and 3-year revenue growth rate of approximately 13.00% per year outperform about 67.77% of global competitors.
Autoliv Inc's 3-year EPS growth rate at an average of 37.50% per year outperforms approximately 76.98% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 1.70% outperforms about 44.89% of global competitors.
Next Steps
In conclusion, Autoliv Inc's upcoming dividend, alongside its historical dividend growth, moderate payout ratio, and strong profitability, present an attractive profile for value investors. The company's robust growth metrics further reinforce confidence in the sustainability of its dividends. Investors seeking to diversify their portfolios with dividend-yielding stocks may find Autoliv Inc to be a compelling option. As always, it is recommended to perform individual due diligence before making investment decisions. 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.
This article first appeared on GuruFocus.
