Nordea Bank Abp's Dividend Analysis
Understanding the Dividend Profile of Nordea Bank Abp
Nordea Bank Abp (NRDBY) recently announced a dividend of $0.99 per share, payable on 2024-04-10, with the ex-dividend date set for 2024-03-22. 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 Nordea Bank Abps dividend performance and assess its sustainability.
What Does Nordea Bank Abp Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Nordea Bank Abp is a universal Nordic bank which generates most of its income through vanilla lending products such as mortgages, household loans, and corporate loans. The bank is also a leading equity and debt underwriter and issuer specialized in the Nordics, generating roughly one tenth of the group's income. Nordea Bank Abp offers life and pension, savings and asset management, as well as private banking services to high-net-worth individuals. It operates primarily in Sweden, Denmark, Finland, and Norway.
A Glimpse at Nordea Bank Abp's Dividend History
Nordea Bank Abp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nordea Bank Abp's Dividend Yield and Growth
As of today, Nordea Bank Abp currently has a 12-month trailing dividend yield of 7.23% and a 12-month forward dividend yield of 8.13%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Nordea Bank Abp's dividend yield and five-year growth rate, the 5-year yield on cost of Nordea Bank Abp stock as of today is approximately 7.23%.
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 2023-12-31, Nordea Bank Abp's dividend payout ratio is 0.58.
Nordea Bank Abp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Nordea Bank Abp's profitability 5 out of 10 as of 2023-12-31, 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. Nordea Bank Abp'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 Nordea Bank Abp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Nordea Bank Abp's revenue has increased by approximately 19.70% per year on average, a rate that outperforms approximately 86.95% 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, Nordea Bank Abp's earnings increased by approximately 38.20% per year on average, a rate that outperforms approximately 85.7% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 19.90%, which outperforms approximately 82.69% of global competitors.
Next Steps
In conclusion, Nordea Bank Abp's forthcoming dividend payment, alongside its historical dividend consistency, presents an attractive aspect for value investors. The bank's solid payout ratio and profitability indicate a sustainable dividend policy. Furthermore, the growth metrics of Nordea Bank Abp, including revenue per share and EPS growth, provide a positive outlook for future dividend sustainability and potential increases. Investors considering high-dividend yield stocks may find Nordea Bank Abp a compelling option, given its performance and prospects. GuruFocus Premium users can explore other high-dividend yield opportunities 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.
