Bankinter SA's Dividend Analysis
Understanding the Dividend Prospects of Bankinter SA
Bankinter SA (BKIMF) recently announced a dividend of $0.14 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-12-27. 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 delve into Bankinter SA's dividend performance and assess its sustainability.
What Does Bankinter SA Do?
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Bankinter SA is a bank operating primarily in Spain, offering services such as financial planning, asset management, retail banking, corporate banking, treasury, and international banking. Customer loans are a significant part of the bank's earning assets. Bankinter SA focuses on innovation and growth, both organically and through acquisitions, and has begun international expansion, starting with Portugal. The bank aims to diversify its revenue, moving from traditional lending to fee-based income from private banking and asset management, with a growing emphasis on corporate banking and consumer finance.
A Glimpse at Bankinter SA's Dividend History
Bankinter SA has established a track record of consistent dividend payments since 2021, with dividends currently paid on a quarterly basis. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Bankinter SA's Dividend Yield and Growth
Bankinter SA currently boasts a 12-month trailing dividend yield of 6.86% and a forward dividend yield of 10.16%, indicating an anticipated increase in dividend payments over the next year. Over the past three years, the bank's dividend growth rate has decreased by -1.50%, extending to a -3.20% annual decrease over a five-year period. However, looking at the past decade, the annual dividends per share growth rate has been an impressive 9.90%. Today's 5-year yield on cost for Bankinter SA stock is approximately 5.83%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Bankinter SA's dividends can be gauged by examining its payout ratio, which currently stands at 0.45. This indicates a balance between paying dividends and retaining earnings for growth. With a profitability rank of 5 out of 10, Bankinter SA's earnings capability is considered fair when compared to its peers. The bank's consistent positive net income over the past decade further bolsters its financial stability.
Growth Metrics: The Future Outlook
Bankinter SA's growth rank also stands at 5 out of 10, reflecting a reasonable growth outlook. The bank's revenue per share and 3-year revenue growth rate of 8.70% per year outperform approximately 62.79% of global competitors. Additionally, the 3-year EPS growth rate of 12.30% per year surpasses that of about 61.22% of global competitors, and the 5-year EBITDA growth rate of -0.30% outperforms roughly 21.79% of global banking institutions.
Engaging Conclusion: Dividend Prospects and Value Investing
In conclusion, Bankinter SA's dividend payments, growth rate, payout ratio, profitability, and growth metrics present a mixed yet promising picture for value investors. While the dividend growth rate has seen some decline, the bank's solid profitability and reasonable growth prospects may provide a foundation for future dividend stability and growth. As value investors consider their next steps, the question remains: Will Bankinter SA's strategic focus on diversification and innovation be enough to ensure continued dividend growth and value creation in the long term?
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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.
