Sampo Oyj's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Sampo Oyj (SAXPY)
Sampo Oyj (SAXPY) recently announced a dividend of $1.83 per share, payable on 2023-11-06, with the ex-dividend date set for 2023-10-27. 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 Sampo Oyj's dividend performance and assess its sustainability.
About Sampo Oyj
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Sampo Oyj is a leading Nordics-based insurer headquartered in Finland and listed in Helsinki. The company operates in Denmark, Estonia, Finland, Norway, Lithuania, Latvia, and the United Kingdom. Sampo has four subsidiaries that mainly sell personal lines of insurance to retail customers. If, the largest property and casualty insurer in the Nordics, also sells insurance in Denmark, Norway, and Finland. Topdanmark, a Danish property and casualty insurer, focuses on personal lines insurance as well as agriculture and small and medium-sized enterprises. Hastings is a digital insurer that focuses on car, van, bike, and home insurance in the United Kingdom. Mandatum, a life insurer and wealth and asset manager, is currently being divested.
Sampo Oyj's Dividend History
Sampo Oyj has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Sampo Oyj's Dividend Yield and Growth
As of today, Sampo Oyj has a 12-month trailing dividend yield of 6.39% and a 12-month forward dividend yield of 14.87%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Sampo Oyj's annual dividend growth rate was -9.70%. Extended to a five-year horizon, this rate increased to -6.60% per year. And over the past decade, Sampo Oyj's annual dividends per share growth rate stands at 4.10%.
Based on Sampo Oyj's dividend yield and five-year growth rate, the 5-year yield on cost of Sampo Oyj stock as of today is approximately 4.54%.
Assessing Dividend Sustainability
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 2023-06-30, Sampo Oyj's dividend payout ratio is 1.82, which may suggest that the company's dividend may not be sustainable.
Sampo Oyj's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sampo Oyj's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Sampo Oyj's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Sampo Oyj's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Sampo Oyj's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sampo Oyj's revenue has increased by approximately 6.60% per year on average, a rate that outperforms approximately 58.55% 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, Sampo Oyj's earnings increased by approximately 9.70% per year on average, a rate that outperforms approximately 61.85% of global competitors.
The company's 5-year EBITDA growth rate of -10.90% outperforms approximately 13.19% of global competitors.
Conclusion
In conclusion, Sampo Oyj has demonstrated a strong history of dividend payments, with a high yield and a positive growth rate. However, its high payout ratio may raise concerns about the sustainability of these dividends. Yet, the company's high profitability and growth metrics, along with a solid revenue model, suggest a promising outlook. Investors should closely monitor these factors to make informed decisions.
GuruFocus Premium users can screen for high-dividend yield stocks 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.
