Bankinter SA's Dividend Analysis
Understanding Bankinter SA's Upcoming Dividend Payout
Bankinter SA (BKNIY) recently announced a dividend of $0.12 per share, payable on 2024-04-08, with the ex-dividend date set for 2024-03-26. 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 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. Its services include financial planning, asset management, retail banking, corporate banking, treasury, and international banking. Customer loans constitute the overwhelming majority of earning assets on the balance sheet. The bank's strategy emphasizes innovation, as well as both organic and acquisitive growth, including international expansion beginning with Portugal. Bankinter's stated purpose for this expansion is to diversify its revenue base away from traditional spread lending and toward fee and commission income from private banking and asset management. To this end, the company has also placed an increasingly greater emphasis on corporate banking and higher-margin consumer finance.
A Glimpse at Bankinter SA's Dividend History
Bankinter SA has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bankinter SA's Dividend Yield and Growth
As of today, Bankinter SA currently has a 12-month trailing dividend yield of 6.87% and a 12-month forward dividend yield of 7.15%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bankinter SA's annual dividend growth rate was -1.50%. Extended to a five-year horizon, this rate decreased to -3.20% per year. And over the past decade, Bankinter SA's annual dividends per share growth rate stands at 9.90%.
Based on Bankinter SA's dividend yield and five-year growth rate, the 5-year yield on cost of Bankinter SA stock as of today is approximately 5.84%.
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 2023-09-30, Bankinter SA's dividend payout ratio is 0.43.
Bankinter SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bankinter SA's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Bankinter SA's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Bankinter SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bankinter SA's revenue has increased by approximately 8.70% per year on average, a rate that outperforms approximately 60.01% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Bankinter SA's earnings increased by approximately 12.30% per year on average, a rate that outperforms approximately 51.24% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -0.30%, which outperforms approximately 21.42% of global competitors.
Next Steps
In conclusion, Bankinter SA's upcoming dividend payout, consistent dividend history, and moderate dividend growth rate are key factors for investors to consider. The company's payout ratio indicates a balance between returning income to shareholders and retaining earnings for growth, while its profitability and growth metrics provide a positive outlook for future sustainability. Investors seeking to expand their portfolio with dividend-paying stocks should closely observe Bankinter SA's financial health and market performance. For those looking for high-dividend yield opportunities, GuruFocus Premium offers the High Dividend Yield Screener tool to aid in the discovery of such investments.
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.
