Booz Allen Hamilton Holding Corp's Dividend Analysis
Understanding the Dividend Profile of Booz Allen Hamilton Holding Corp
Booz Allen Hamilton Holding Corp (NYSE:BAH) recently announced a dividend of $0.47 per share, payable on 2023-12-04, with the ex-dividend date set for 2023-11-14. 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 Booz Allen Hamilton Holding Corp's dividend performance and evaluate its sustainability.
What Does Booz Allen Hamilton Holding Corp Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Booz Allen Hamilton Holding Corp is a renowned provider of management consulting services primarily to the U.S. government. The firm's expertise spans across technology services, including cloud computing and cybersecurity consulting, and extends to engineering consulting. Focused on defense, intelligence, and civil markets, Booz Allen Hamilton also caters to large corporations, institutions, and nonprofit organizations worldwide, supporting clients through long-term engagements.
A Glimpse at Booz Allen Hamilton Holding Corp's Dividend History
Booz Allen Hamilton Holding Corp has established a solid track record of consistent dividend payments since 2012, with payouts occurring quarterly. The company has not only maintained its dividends but has also achieved the status of a dividend achiever by increasing its dividend annually since 2012, a testament to its commitment to shareholder returns.
Below is a chart illustrating the annual Dividends Per Share to help track historical trends.
Breaking Down Booz Allen Hamilton Holding Corp's Dividend Yield and Growth
Booz Allen Hamilton Holding Corp currently boasts a 12-month trailing dividend yield of 1.47% and a 12-month forward dividend yield of 1.50%, indicating anticipated growth in dividend payments over the next year.
The company's annual dividend growth rate over the past three years was an impressive 19.20%. Looking at a five-year span, this growth rate accelerates to 21.40% per annum, and over the last decade, the annual dividends per share growth rate stands at a robust 17.80%.
Considering Booz Allen Hamilton Holding Corp's dividend yield and five-year growth rate, the 5-year yield on cost for the stock is approximately 3.88%.
The Sustainability Question: Payout Ratio and Profitability
When assessing the sustainability of dividends, the dividend payout ratio is a key metric. Booz Allen Hamilton Holding Corp's payout ratio as of 2023-09-30 is 0.83, which may raise concerns about the sustainability of its dividends in the long term.
However, the company's profitability rank is a strong 8 out of 10, reflecting good profitability prospects compared to its peers. Booz Allen Hamilton Holding Corp has also consistently reported positive net income over the past decade, reinforcing its financial stability.
Growth Metrics: The Future Outlook
Booz Allen Hamilton Holding Corp's growth rank of 8 out of 10 indicates a favorable growth trajectory compared to its competitors. The company's solid revenue per share and 3-year revenue growth rate of 9.70% per year outperform approximately 65.95% of global competitors.
Booz Allen Hamilton Holding Corp's earnings, as demonstrated by the 3-year EPS growth rate, have increased by roughly 12.80% per year on average, surpassing approximately 54.06% of its global competitors. Additionally, the company's 5-year EBITDA growth rate of 17.40% outperforms nearly 69.98% of its peers.
Next Steps in Dividend Investing
In conclusion, Booz Allen Hamilton Holding Corp's track record of dividend growth, coupled with a moderate yield and strong profitability, presents an attractive profile for dividend investors. While the payout ratio warrants monitoring, the company's robust growth metrics suggest a positive outlook for future dividend sustainability. Investors seeking high-dividend yield opportunities may benefit from exploring further with tools such as 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.
This article first appeared on GuruFocus.
