A. P. Moller Maersk A/S's Dividend Analysis
Examining the Upcoming Dividend and Financial Health of A. P. Moller Maersk A/S
A. P. Moller Maersk A/S (AMKBY) recently announced a dividend of $0.38 per share, payable on 2024-04-03, with the ex-dividend date set for 2024-03-15. 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 A. P. Moller Maersk A/S's dividend performance and assess its sustainability.
What Does A. P. Moller Maersk A/S Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
A.P. Moller-Maersk is a Denmark-listed global conglomerate involved in global trade, shipping, and energy. Maersk Line, the largest contributor to group revenue and earnings, has been the largest container shipping company globally for more than 20 years. Maersk was founded in 1904 and has since been run by the Moller-Maersk family, which currently holds slightly more than 50% of the share capital. The group has been active over the past few years in divesting noncore operations, such as its long-standing stakes in Danske Bank and Dansk Supermarked as well as its oil and gas operations.
A Glimpse at A. P. Moller Maersk A/S's Dividend History
A. P. Moller Maersk A/S has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down A. P. Moller Maersk A/S's Dividend Yield and Growth
As of today, A. P. Moller Maersk A/S currently has a 12-month trailing dividend yield of 21.00% and a 12-month forward dividend yield of 5.41%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, A. P. Moller Maersk A/S's annual dividend growth rate was 145.40%. Extended to a five-year horizon, this rate decreased to 88.20% per year. And over the past decade, A. P. Moller Maersk A/S's annual dividends per share growth rate stands at an impressive 17.90%.
Based on A. P. Moller Maersk A/S's dividend yield and five-year growth rate, the 5-year yield on cost of A. P. Moller Maersk A/S stock as of today is approximately 495.81%.
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, A. P. Moller Maersk A/S's dividend payout ratio is 1.44, which may suggest that the company's dividend may not be sustainable.
A. P. Moller Maersk A/S's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks A. P. Moller Maersk A/S's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. A. P. Moller Maersk A/S's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and A. P. Moller Maersk A/S's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. A. P. Moller Maersk A/S's revenue has increased by approximately 18.70% per year on average, a rate that outperforms approximately 76.34% 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, A. P. Moller Maersk A/S's earnings increased by approximately 18.60% per year on average, a rate that outperforms approximately 56.63% of global competitors.
Next Steps
As value investors consider the upcoming dividend payment from A. P. Moller Maersk A/S, they should also weigh the company's history of robust dividend growth against the sustainability concerns raised by the current payout ratio. With a fair profitability rank and promising growth metrics, A. P. Moller Maersk A/S appears to have a solid foundation for future performance. However, investors should continue to monitor these key indicators to ensure that the company's dividends remain a viable and attractive component of their investment strategy. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.
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.
